Destination Maternity gets 90-day extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Dec. 2 – Destination Maternity Corp. received a 90-day extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the plan filing period through Feb. 15 and the solicitation period through April 19.

The company said in its motion that after its retail locations closed, it continued to operate under the terms of a transition services agreement, which was in effect until June 30. The company is in the process of winding down that agreement.

The company also said that it is in continuing negotiations regarding a royalty escrow, which might bring in additional funds to the debtors’ estates.

“The debtors are seeking to monetize the remaining assets to maximize value to creditors,” the company said in its motion.

“Given the many moving parts – particularly in the current pandemic environment – the complexity of these Chapter 11 cases is apparent.”

Destination Maternity is a clothing retailer based in Moorestown, N.J. The company filed bankruptcy on Oct. 21, 2019 under Chapter 11 case number 19-12256.

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