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Law360 (July 8, 2020, 10:04 PM EDT ) Kitchenware retailer Sur La Table filed for Chapter 11 protection in New Jersey bankruptcy court Wednesday as the business faces more than $100 million in liabilities and plans to complete a restructuring and going-concern sale, noting that many of its stores have reopened following COVID-19-related closures.
Sur La Table Inc. announced that it has secured the necessary debtor-in-position financing and that it has entered into a stalking horse asset purchase term sheet with affiliates of Fortress Investment Group.
"The company contemplates the sale of Sur La Table retail stores after the rationalization of its national store footprint and closure of certain stores to prosper in the current retail environment and position the company for a vibrant future," the kitchen retailer said in a release.
A first-day hearing is scheduled for Friday before U.S. Bankruptcy Judge Michael B. Kaplan.
Fortress is working with STORY3 Capital Partners, which, Sur La Table says, together bring the necessary capital and "deep consumer expertise" to help the company grow. Once the sale is complete, the company will consist of its retail stores, in-person and online cooking classes, and e-commerce business, Sur La Table said.
Sur La Table framed the effects of COVID-19 as an opportunity, noting that food, cooking and in-home entertainment continue to "capture" a "mindshare" of consumers.
"This sale process will result in a revitalized Sur La Table, positioned to thrive in a post COVID-19 retail environment," CEO Jason Goldberger said in a release. "Sur La Table will have a balance sheet and retail footprint optimized to position the company for a bright future that continues our nearly 50-year tradition of offering high-quality cooking products and experiences to our customers."
The company noted that as of July 4, it has reopened 121 stores across the country in accordance with pandemic regulations.
Sur La Table, which began in Seattle's Pike Place Market in 1972 and was bought by the Behnke family in 1995, offers kitchenware brands and products tailored for cooking preparation and presentation.
In September 2011, alternative investment products provider Investcorp Bank BSC announced its acquisition of the Seattle-based kitchenware retailer from private equity firm Freeman Spogli & Co. and the Behnke family.
Sur La Table is represented by Michael D. Sirota of Cole Schotz PC.
The case number is 3:20-bk-18368, in the U.S. Bankruptcy Court for the District of New Jersey.
--Editing by Orlando Lorenzo.
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