Limited Stores, a women’s clothing retailer, has filed a voluntary petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company entered into an asset purchase agreement with an affiliate of private equity firm Sycamore Partners to acquire the company’s intellectual property and certain related assets pursuant to Section 363 of the Bankruptcy Code, subject to the receipt of higher or better offers.
The ultimate outcome of the filing and any asset sale is subject to the oversight and approval of the bankruptcy court. Sycamore Partners has more than $3.5 billion in capital under management and specializes in retail and consumer investments.
According to papers submitted on the first day motions, Bank of America served as administrative agent and collateral agent for the company’s credit agreement dated August 24, 2007. The revolving credit agreement provided for a senior secured revolving credit facility in an amount of up to $50 million, subject to certain terms and conditions. Obligations under the facility were secured by a first priority lien on substantially all of the debtors’ assets.
The aggregate pre-petition credit agreement commitment was $35 million, subject to certain terms and conditions. Cerberus Capital was administrative agent for the lenders.
A DIP facility has not yet been approved.
Limited’s legal advisor in connection with the restructuring was Klehr Harrison Harvey Branzburg. RAS Management Advisors served as its restructuring advisor and Guggenheim Securities served as its investment banker for the restructuring.