As SGB Update first reported Thursday, Joe's Sports & Outdoor & More, t Northwest retailer formerly known as G.I. Joe's, has filed for Chapter 11 bankruptcy protection. Initial reports indicated that t retailer planned to keep all 30 of its stores open while it explored attempted to obtain credit, raise additional capital from third parties or finding a strategic partner. Court documents provide a different strategy, one that favors t liquidation of all assets by t end of t month.
In early reports, a Joe's spokesman said t
Joe's said it had obtained $51 million in new borrowing from Wells Fargo Retail Finance, subject to court approval. It also said it will continue to pay its employees wages and benefits. T
Debtor-in-Possession financing “contemplates” a sale of t Joe's business within approximately 30 days of t petition date.“Though t
Joe's, formerly called G.I. Joe's, listed both assets and debt of $100 million to $500 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Delaware. T
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top 5 sporting goods industry companies include Columbia Sportswear ($888.3k), Carhartt Inc.($830.8k), Rocky Brands ($707.0k), Under Armour ($647.9k) and All Sports Supply ($443.9k).TGryphon Investors of San Francisco in 2007. T decision to file for bankruptcy follows a strategic review announced by t company last month during which it temporarily laid off warehouse workers and explored ways to bring more capital to t business.
“We at Gryphon are deeply disappointed that Joes is filing for Chapter 11 bankruptcy protection,” said David Andrews, President and Managing General Partner at Gryphon. “After initially purchasing t
company in 2007, Gryphon recruited new CEO Hal Smith in 2008 and invested more equity capital this time last year to provide additional liquidity as t economy and retail environment worsened. Given Hal Smiths strong first year of implementing positive operational changes despite t historic economic downturn, we were prepared to invest additional capital once again to lp restructure t company outside of court. Unfortunately we could not come to mutually acceptable terms with t lenders. It is our hope that a solution is found through t Bankruptcy process that enables Joes to continue on as a viable business for many years to come.”
Joe's is seeking approval from t Court for a sale process that would seek bids a select a “stalking horse” suitor by March 20, 2009, with final bids due by March 27, 2009. T final sale transaction would occur by April 3, 2009. Joe's intends to pursue a two track sale process simultaneously by soliciting bids for a sale of as many stores as possible as a going concern and at t same time soliciting bids for conducting GOB sales.