Old Time Pottery files Chapter 11 bankruptcy, will close some stores

By Caroline Salls

Pittsburgh, June 29 – Old Time Pottery, LLC filed Chapter 11 bankruptcy on Sunday in the U.S. Bankruptcy Court for the Middle District of Tennessee.

Chief financial officer Jonathan Tyburski said in a statement filed with the court that “Old Time Pottery was performing well prior to the shutdown of American retailers caused by the Covid-19 pandemic; however, the Covid-19 related shutdown caused company sales to decline precipitously beginning in mid-March.”

As a result, Tyburski said the company furloughed most of its employees and took immediate steps to conserve cash.

Although its business has improved as stay-at-home restrictions ease and more shoppers venture out, Tyburski said Old Time Pottery believes that reorganizing under Chapter 11 will be in the long-term best interest of all constituencies and allow the company to emerge stronger.

In addition, Tyburski said to address the company’s challenges and maximize its future prospects, Old Time Pottery’s management team has decided that it is appropriate to close and wind down some store locations to increase liquidity, maximize costs savings and strengthen the company’s overall financial position to allow it to continue as a going concern.

Old Time Pottery has entered into a consulting agreement under which SB360 Capital Partners, LLC will assist with the store closings.

Initially, four stores are expected to begin closing, with the possibility of other locations being added to the list.

The initial store closings are expected to begin July 1.

SB360 will receive a base fee of 1.5% of the gross proceeds from the sale of merchandise, plus 15% of the proceeds from the sale of furniture, fixtures and equipment and 50% of additional merchandise net proceeds.

In conjunction with the bankruptcy filing, Old Time Pottery obtained a commitment for $32.3 million in debtor in-possession financing.

Second Avenue Capital Partners, LLC is the DIP financing agent.

The DIP facility is scheduled to mature on Dec. 24.

Interest will accrue at Libor plus 750 basis points.

According to court documents, Old Time Pottery has $50 million to $100 million in both assets and debt.

No unsecured creditors were listed with claims of $1 million or more.

Bass Berry & Simms is representing the company in its Chapter 11 proceedings.

Old Time Pottery is a Murfreesboro, Tenn.-based home decor retailer. The Chapter 11 case number is 20-03138.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.