September 2014

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.



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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.