rue 21’s reorganization plan gets court OK
rue21 has cleared a significant hurdle in its effort to move forward after declaring bankruptcy.
The teen apparel retailer announced that the U.S. Bankruptcy Court for the Western District of Pennsylvania confirmed the company's plan of reorganization, which clears the way for rue21 to emerge from the bankruptcy process after less than four months. Rue 21 filed for Chapter 11 protection in May 2017, listing $307 million in pre-petition assets. It filed a month after it said it would close 400 stores.
"We are very pleased to have moved through the restructuring process in a relatively short period," said Melanie Cox, CEO of rue21. "With the support of our lenders, our landlords, all of our business partners and the hard work of our team, the company has performed consistently well ahead of its liquidity plan, and exceeded its second quarter target for Adjusted EBITDA by over 200%."
The retailer expects its reorganization to become effective by September 15, 2017, once all closing conditions have been met.
Rue 21 currently operates 758 stores in 45 states in shopping malls, outlets and strip center.
Former Winn-Dixie exec takes helm of specialty grocer
The Fresh Market has ended its search for a new chief executive.
The grocer appointed Larry Appel as the company’s president and CEO, effective immediately. Appel brings nearly 30 years of experience in retail, legal and corporate strategy, and most recently served as CEO of Skeeter Snacks. From 2002 to 2012, he served at Winn-Dixie Stores in a variety of senior leadership roles including COO. Prior to that, he was senior VP of legal at The Home Depot.
In June 2017, Fresh Market CEO Richard Anicetti resigned after less than two years on the job. Brian Nicholson, CFO of Fresh Market, was appointed interim CEO. He will remain as CFO.
“Following an extensive search and review of both internal and external candidates, the Board believes that Larry is the best leader for The Fresh Market going forward," stated Andrew Jhawar, chairman, Fresh Market, and senior partner at Apollo Global Management, which acquired the grocer in April 2016. "We look forward to partnering with Larry and are confident in his ability to lead operationally and to execute strategies to ‘win’ with our customers."
Founded in 1982, The Fresh Market operates 176 stores in 24 states across the nation.
Beleaguered electronics retailer inches closer to reorganization
RadioShack is entering the latest chapter in its ongoing financial saga — but on a positive note.
On Thursday, RadioShack’s Chapter 11 bankruptcy plan cleared a preliminary court review. This decision enables the retailer to move forward with its strategy to reorganize, and save a small portion of the company, according to Dealerscope.
As originally reported by the Wall Street Journal, the reorganized company will be composed of online operations, a major network of independent dealers, and somewhere between “zero and 28” company-owned brick-and-mortar retail locations. Yet, this plan still hinges on the outcome of a lawsuit that RadioShack filed against Sprint back in June.
RadioShack filed for bankruptcy protection in March, its second filing in just over two years. To date, less than 30 company-owned stores remain in operation — down from more than 4,400 prior to its first bankruptcy filing in 2015.
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