Sur La Table has filed for Chapter 11 bankruptcy protection and will undergo a restructuring and going-concern sale of the company, subject to court approval. The retailer also plans to close half of its approximately 120 stores, a company spokesperson told CNN.
Sur La Table has secured the necessary debtor-in-possession financing to complete the process. The bankruptcy could result in the sale of the company to affiliates of Fortress Investment Group, which have reached a stalking horse agreement for a minimum bid and possible purchaser. The retailer plans to emerge from bankruptcy with its most successful stores, in-person and online cooking classes and e-Commerce business intact.
“This sale process will result in a revitalized Sur La Table, positioned to thrive in a post-COVID-19 retail environment,” said Jason Goldberger, CEO of Sur La Table in a statement. “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 has reopened 121 locations as of July 4, and these stores will maintain operations during the bankruptcy process.