Overview
- The retailer is negotiating a forbearance with certain creditors after skipping more than $100 million of interest due on Dec. 30.
- Some bondholders have discussed a debtor-in-possession loan with at least $750 million of new money and a potential roll-up of existing debt, though terms remain fluid.
- A Chapter 11 filing could occur in the coming weeks, according to people familiar with the discussions.
- Liquidity pressure stems from inventory and cash-flow strains, with revenue down 13% year over year to $1.6 billion in the second quarter.
- Leadership shifted as Marc Metrick stepped down and executive chairman Richard Baker assumed the CEO role.