FinalCut: Love Culture Files Chapter 11; Owes Salus Capital $13.7MM
ABF Journal illustrator Jerry Gonzalez provides his take on the recent bankruptcy filing of Love Culture, a women’s retail chain that owes Salus Capital Partners $13.7 million under a pre-petition credit agreement. Salus will serve as administrative and collateral agent for a lender group for the pending $12 million DIP financing.
Women’s clothing chain Love Culture filed for bankruptcy that will allow it to close underperforming stores while focusing its attention on improving performance in its remaining store base and e-commerce.
According to bankruptcy court documents, Love Culture owes Salus Capital Partners $13.7 million under a pre-petition credit agreement that encompassed a $17.5 million revolver and a $6 million term loan. The women’s retailer is seeking court approval of a $12 million DIP financing agreement, with Salus as administrative and collateral agent for a lender group.
The court documents also revealed disputed claims asserted by Prime Business Credit and United LC Capital by virtue of UCC-1 financing statements filed on June 11, 2014 and April 20, 2014, respectively. PBC is shown to be owed $4.9 million under a “disputed” claim.