Harry & David Reaches Consensus with Creditors and Noteholders on Structure for Plan of Reorganization

MEDFORD, Ore.–(BUSINESS WIRE)–Harry & David Holdings, Inc., a leading multi-channel specialty retailer and producer of branded premium gift-quality fruit, gourmet food products and other gifts marketed under the Harry & David®, Wolferman’s® and Cushman’s® brands, announced that it has reached a resolution with the Official Committee of Unsecured Creditors in the Company’s chapter 11 cases and holders of approximately 81 percent of the Company’s public notes on the structure of a consensual Chapter 11 Plan. As part of this resolution, the Official Committee of Unsecured Creditors have committed their support to an amended Chapter 11 Plan structure and withdrew all objections to the Company’s motions seeking approval of post-petition financing and certain plan-related relief.

The Company also announced that it has received final Bankruptcy Court approval for a $100 million first-lien debtor-in-possession revolving credit facility provided by the Company’s secured lenders and for a $55 million second-lien DIP term loan provided by a group of holders of the Company’s public notes. The court has also given final approval for up to $100 million in exit financing, which will be provided by the Company’s current lenders, as well as for an amended agreement by supporting noteholders to backstop a $55 million rights offering that will provide Harry & David with the necessary equity financing to emerge from Chapter 11.

“We are pleased that we were able to reach a consensus with our major constituents on the structure of a Chapter 11 Plan and that we have received the Court’s final approval of our financing, both of which are key steps forward in our efforts to restore Harry & David to financial health,” said Kay Hong, Chief Restructuring Officer and interim Chief Executive Officer. “We look forward to implementing our reorganization plan in order to emerge from this process as a stronger, healthier and more competitive company.”

As previously announced, the Company initiated voluntary Chapter 11 reorganization proceedings on March 28, 2011. Consumers can continue to purchase Harry & David products through our catalogs, online at www.harryanddavid.com and at our 70 stores nationwide. Customers may continue to direct inquiries to Harry & David’s customer support at (877) 322-1200. Vendors and other stakeholders can obtain additional information about the reorganization by visiting www.gcginc.com/cases/had or by calling (888) 425-7040. During the Chapter 11 process, the Company will pay for post-petition purchases of goods and services in the ordinary course of business.

Harry & David’s investment banker is Rothschild Inc., its legal advisor is Jones Day, and its financial advisor is Alvarez & Marsal. The Company’s bondholders are being advised by Stroock & Stroock & Lavan LLP, as legal counsel, and Moelis & Company as financial advisor.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.