Daily News: July 17, 2014

Love Culture Files Chapter 11; Owes Salus Capital $13.7MM

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 prepetition credit agreement that encompassed a $17.5 million revolver and a $6.0 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 that there are 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.