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.