The company, who sells online through almost twenty e-commerce sites, including NormThompson.com and Blair.com, has opted forChapter 11 bankruptcy. It filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware last week. It hopes to reorganize and eliminate almost $420 million in debt.
Orchard’s financial advisors are hoping for $40 million for a new term loan, $100 million for a revolving loan and $140 million in special debt financing. At this time is has already obtained $120 million in financing from its lenders.
Although it is listed No. 63 in the Internet Retailer Top 500 Guide, it owes vendors like Google Inc. and Federal Express Corp. $6.6 million and $554,077 respectively. It has also taken out loans for the amount of $73.4 million. This bankruptcy filing makes Orchard Brands the largest big retailer to jump on the bankruptcy train. It joins Blockbuster Inc. (No. 34) and Oriental Trading Co. Inc. (No. 57) for Chapter 11 bankruptcy.