The Payless Board of Directors authorized the company to seek court approval of up to $25 million in debtor-in-possession financing. According to court records, WSFS Bank will act as administrative agent and collateral agent on the financing.
The DIP financing will be provided by certain of the company’s existing lenders, has the support of key parties-in-interest and has been submitted to the U.S. Bankruptcy Court for the Eastern District of Missouri for approval. It will be on the court’s calendar for early next week.
Stephen Marotta, chief restructuring officer of Payless, said, “After reviewing multiple proposals, we have chosen a financing plan that will enhance our ability to serve our customers and support suppliers worldwide. Once approved, the funds will be available to finance the cost of goods, shipping and freight in order to augment the ongoing liquidation sales. I’d like to thank our factory and supplier partners, who have worked to enable us to efficiently execute our store closing sales, and the vendors that delivered goods from ports in Asia.”
Akin Gump Strauss Hauer & Feld and Armstrong Teasdale are serving as the company’s legal counsel, Cassels Brock & Blackwell as Payless Canada’s counsel, Ankura Consulting as the company’s restructuring advisor and PJ SOLOMON as financial advisor.
A&G Realty Partners is serving as real estate consultant to the company.