The Rockport Group LLC announced that the company has received approvals from the U.S. Bankruptcy Court for Delaware for all of the company’s First Day motions, which will support Rockport’s business operations as the company completes the previously announced court-supervised sale process.
The Court has granted Rockport interim approval to access up to $10 million in new debtor-in-possession (DIP) financing from its existing noteholders, in addition to its existing $60 million credit facility. Among other First Day orders, the company also received authorization to continue to pay employee wages and benefits, honor customer commitments and otherwise manage its day-to-day operations in the ordinary course through the sale process.
All of the company’s businesses around the world are open and operating in the normal course, including the company’s wholesale operations and retail stores in Japan, Korea, China and Hong Kong, as well as in Europe, Canada and the U.S. Customers can continue to shop Rockport’s exceptional quality brands and diverse assortment of footwear at leading department stores and specialty retailers around the world, as well as through the company’s e-commerce platform and retail locations.
As previously announced, Rockport has entered into an asset purchase agreement with CB Marathon Opco, LLC an affiliate of Charlesbank Equity Fund IX, Limited Partnership, pursuant to which Charlesbank will acquire substantially all of Rockport’s assets. The agreement with Charlesbank includes Rockport’s global wholesale assets, e-commerce platform and retail operations in Asia and Europe.
To facilitate the sale, Rockport and its U.S. and Canadian subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for Delaware. The transaction is being undertaken pursuant to Section 363 of the U.S. Bankruptcy Code. Accordingly, Charlesbank is serving as the “stalking horse bidder” in a court-supervised sale process and the agreement is subject to higher and better offers, among other conditions.
Rockport intends to pay for all goods and services delivered on or after May 14, 2018 in the normal course. Payment for goods and services delivered to the U.S. and Canadian entities prior to the filing will be addressed through the Chapter 11 process. Under the terms of the agreement, Charlesbank will assume responsibility for payment of certain pre-petition obligations to product suppliers of the acquired assets.
