Five months after it filed for Chapter 11 bankruptcy protection, multititle mailer Orchard Brands is ready to forge ahead as a leaner, stronger company. Fueling this fresh start is $90 million in secured financing from PNC Financial Services Group.
Orchard Brands, which targets men and women age 55 and older, unveiled a reorganization plan in late April when it successfully emerged from Chapter 11. And this financing, secured June 6, provides operating liquidity, solidifies its restructuring, and allows the company to operate with its past clearly behind it.
“It’s a good thing,” says Craig Battle, managing director at investment bank Tucker Alexander. The financing allows Orchard Brands to operate in their recapitalized condition, which is strong, ne notes.
“These guys have gotten rid of a lot of debt,” Battle says, and they have cash flow from their business now, and secured financing. “They should be ready to rock and roll—they are leaner and stronger.”
Following its Chapter 11 filing in January, Orchard Brands has eliminated about $420 million of debt in its financial restructuring.
Orchard Brands includes 17 titles: Appleseed’s, Bedford Fair Lifestyles, Blair, Coward, Drapers & Damon’s, Gold Violin, Haband, Intimate Appeal, Linen Source, Monterey Bay, Norm Thompson, Old Pueblo Traders, Sahalie, Solutions, The Tog Shop, Willow Ridge, and WinterSilks.