Hampshire Group files for Chapter 11 protection
The company engaged in a thorough analysis of its businesses and assets. Ultimately, the company was unable to attract a financing source to provide adequate liquidity to fund the company’s ongoing strategic turnaround initiatives.
As a result, the company’s Board of Directors determined that an orderly liquidation and wind-down of its licensed businesses would be the best way to maximize value for the benefit of the company’s creditors and stakeholders.
The litigation efforts pursued by one unsecured creditor since July of this year have compelled the company and certain of its affiliates to seek protection under Chapter 11 in order to continue to pursue, and ultimately complete, the wind-down process without disruption.
This decision follows a comprehensive strategic and financial review of the businesses. The company ultimately determined that this is the best course of action, under the circumstances.
In conjunction with its Chapter 11 filings, the company has received a commitment from its senior secured creditor, Salus Capital Partners, to allow the company to utilize cash collateral in accordance with a mutually agreed upon budget that is designed to afford the company the requisite runway to consummate the wind-down effort that has been diligently pursued over the past several months. ■