BEVERLY, Mass.--(BUSINESS WIRE)--Orchard Brands announced today that its Plan of Reorganization, which the Bankruptcy Court confirmed last week, has become effective and it has successfully emerged from chapter 11 approximately three months after voluntarily filing for bankruptcy protection.
Neale Attenborough, Orchard Brands’ Chairman & Chief Executive Officer, said, “This is an exciting day for Orchard Brands and one that represents a new beginning. Through the restructuring process, we were able to eliminate approximately $420 million of debt, maintain our day-to-day business operations with minimal disruption, and exit chapter 11 with substantial liquidity and the capital to execute on our growth plans.
“As a result of our increased operational flexibility and strengthened capital structure, Orchard Brands is emerging as a stronger company well-positioned for long-term success. With an unparalleled portfolio of brands and strong demand among our target market segment – the rapidly growing demographic of men and women above the age of 55 – we have a very bright future as we continue to focus on providing our 40 million customers with the excellent products and service they expect from us.”
Attenborough concluded, “I would like to thank our hard working associates for their dedication and professionalism, without their efforts we would not be making this announcement today. I would also like to thank all of our vendors, creditors, and other stakeholders, whose strong support enabled us to emerge from chapter 11 in such a swift time period. On behalf of our leadership team, we look forward to working together with all of our key stakeholders as we enter our next phase of growth.”
Kirkland & Ellis LLP, acted as Orchard Brands’ legal counsel, and Alvarez & Marsal and Moelis & Company, acted as its financial advisors.
ABOUT “ORCHARD BRANDS”
“Orchard Brands” is a leading, multi-channel marketer of apparel and home products focused on serving the needs of the rapidly growing market segment of women and men above the age of fifty-five. Through its 17 brands the Company provides quality products to consumers through the catalog, Internet and retail channels, with a relentless focus on delivering superior service.
Forward-looking statements
This press release, as well as other statements made by the Company may contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that reflect, when made, the Company’s current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.