Syms Emerges From Chapter 11 as Trinity Place Holdings
Syms Corp. announced it has completed its financial restructuring and has emerged from Chapter 11 as Trinity Place Holdings Inc. The emergence completes a ten-month bankruptcy process in which Syms and its subsidiaries, including Filene’s Basement, closed their retail stores, liquidated their inventories and redeemed all shares of company stock owned by Marcy Syms and her related trusts.
Trinity Place Holdings will seek to maximize the value of its commercial real estate and the intellectual property owned by Filene’s Basement for the benefit of all stakeholders under the company’s plan of reorganization.
“Today marks the launch of an entirely new company with attractive real estate and intellectual property assets,” said Lauren Krueger, the new chief executive officer of Trinity Place Holdings and managing member of Esopus Creek Advisors LLC. “We expect that the company will satisfy the negotiated payments to creditors in accordance with the terms of the plan of reorganization. We are excited about the ability to create value for shareholders. Most of the funds necessary to emerge from bankruptcy were raised through the sale of $25 million of new shares of common stock, reflecting the shareholders’ strong belief in the future equity value of the company.”
The company’s current business plan includes the monetization of 16 commercial real estate properties and the development of 28-42 Trinity Place in Lower Manhattan. The company also plans to explore the licensing of its intellectual property, including its rights to the Filene’s Basement trademark, the Stanley Blacker and Maine Bay brands, the intellectual property associated with the well-known Running of the Brides event, and An Educated Consumer is Our Best Customer slogan.
As part of its emergence from Chapter 11, Trinity Place Holdings has reincorporated in Delaware. It is expected that the common stock of the company will continue to be quoted over-the-counter, but that the ticker symbol will change to TPHS.
The $25 million offering of new stock was backstopped by DS Advisors LLC, Esopus Creek Value Series Fund LP-Series A and Marcato Capital Management LLC. The Board of Directors of Trinity Place Holdings consists of Alan Cohen, Mark Ettenger, Andrew L. Sole, and Marina Shevyrtalova. Alvarez & Marsal is providing certain interim management services to the new company and Munger, Tolles & Olson LLP is acting as its legal counsel.
Trinity Place Holdings owns commercial real estate in nine states and a variety of intellectual property assets focused on the consumer sector.
Previously on abfjournal.com: