Chicago Specialty jewelry retailer Whitehall Jewelers Holdings, Inc., announced on Monday that it, and its operating subsidiary Whitehall Jewelers, Inc., has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made Monday in the U.S. Bankruptcy Court for the District of Delaware.
To fund its continuing operations during the reorganization process, the company said it has negotiated an $80 million debtor-in-possession (DIP) financing from Bank of America, N.A., Wells Fargo Retail Finance, LLC, and GMAC Commercial Finance, LLC. This DIP credit facility would replace the company's previous $125 million revolving credit facility.
Subject to court approval, Whitehall will use the DIP credit facility to fund its working capital requirements, including employee wages and benefits, certain supplier payments and other operating expenses during the reorganization process.
Whitehall operates 373 stores in regional and super-regional malls in 39 states.