Richmond, VA (PRWEB) February 9, 2009
S&K Famous Brands, Inc. has announced that it has filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Easter District of Virginia in Richmond, Va.
The company intends to continue operations without interruption during the Chapter 11 process, while its management team and advisors focus on executing the comprehensive restructuring plan announced in July 2008.
To fund its continuing operations during the reorganization process, the Company has negotiated $13.0 million debtor-in-possession (DIP) financing from Wells Fargo Retail Finance. The Company will use the DIP credit facility to fund its working capital requirements, including employee wages and benefits, post-petition vendor payments, and other operating expenses during the reorganization process.
Joseph A. Oliver, III, President and Chief Executive Officer commented, "Our first priority is to reduce debt and recapitalize the Company as quickly as possible. We have already taken our restructuring pain and implemented the actions needed to fix our company, including consolidating our store base, reducing our operating costs and introducing the merchandise that is attracting a new generation of happy S&K shoppers. We will continue to do what it takes to reduce operating costs and improve our operations. Our goal is for this process to be the final step towards building a specialty retail chain that can prosper in the future. We ran positive comparable store sales and strong traffic increases this past holiday season, which gives us confidence about the tough choices we have made. I appreciate all the support from our vendors, landlords, customers and associates."
S&K Famous Brands, Inc is a menswear retailer operating 136 stores in 23
States; reaching from the East Coast to Kansas and from Maine to Florida. S&K offers a complete line of men's tailored and non-tailored collections at competitive value prices. Over the last year, S&K has expanded its offerings to include a much broader mix of sportswear, jeans and dress-casual shirts and has introduced new designer collections from Kenneth Cole, Michael Kors, Michael Brandon, and others. Additionally, the Company's tuxedo rental, corporate apparel and e-commerce divisions continue to grow rapidly.
The company works with strategic advisor Alvarez & Marsal LLC, a global performance improvement and turnaround consulting firm, to assist the management team on the restructuring plan that has been underway since July 2008. The company's restructuring counsel is Tavenner & Beran, PLC, its corporate counsel is McGuire Woods LLP, and its claims agent is Kurtzman Carson Consultants.
For more information, visit http://www.skmenswear.com.
Joseph Oliver III, President & CEO, 804-346-2520
Bryan Kipp, Vice-President Marketing, 804-346-2553
Except for historical information contained herein, the statements in this release may be forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which may cause future events to differ materially from those expressed in such forward-looking statements. Such risks and uncertainties include numerous operational factors and economic conditions, such as the level of demand for the Company's products and services, the competitive environment in the value-priced men's apparel industry in general and in the Company's specific market area, inflation, changes in costs of goods and services and economic conditions in general and in the Company's specific market area. Risks and uncertainties relating to the Company's stock include the unpredictability of market conditions and whether any broker-dealers continue to act as market makers in the Company's stock. Any forward-looking statements made in this release are made only as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.