Fashion jewelry chain Charming Charlie filed for Chapter 11 bankruptcy protection and entered into a restructuring agreement with lenders and equity sponsors.
“During this holiday season, CharmingCharlie.com and hundreds of our stores across the country are open for business and serving customers,” said Lana Krauter, interim CEO of Charming Charlie. “The actions we are announcing today re-intended to help ensure the company has adequate sources of financing and the right capital structure to support the business on an ongoing basis as we continue to implement our back-to-basic strategy.”
The company secured $20 million in new money DIP financing from a majority of its existing term loan lenders and entered into a $35 million DIP ABL. According to documents filed with the court, Bank of America is administrative agent for the ABL financing.
Kirkland & Ellis is serving as legal counsel, AlixPartners as restructuring advisor and Guggenheim Securities as investment banker to Charming Charlie.