NPC International has been dealing with “a perfect storm of problems” including coronavirus-related shutdowns, a massive debt load and rising costs.
The company said it will eliminate $7 billion in debt though the restructuring.
“While our core business remains strong, with attractive profitability and cash flow characteristics, our debt levels are too high."
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11.”
With its Chapter 11 filing, Templar is “joining a growing list of distressed operators amid the sharpest oil market downturn in recent memory.”
The impact of COVID-19 on "demand for our products and on our business is truly unprecedented in Libbey's more than 200-year history."
"This is not the outcome we hoped for when we began [the Chapter 11] process, and we are deeply saddened to move forward with winding down Pier 1."
The discounter's in-store sales only business model left it unable to weather the fallout from the coronavirus pandemic.
The iconic retailer says the progress it had been making after years of declining sales "was wiped out with the onset of COVID-19."
The luxury retailer "had been struggling with competition from online rivals and dwindling cash" before the coronavirus forced it to close its stores.
The retail chain said it reached a deal with its lenders to convert $1.65 billion of debt into equity.
Financially distressed companies will find that Chapter 11 can be expensive, slow, and involve lots of oversight and reporting requirements.
