NEW YORK -- Bankrupt Jacobson Stores Inc. last week received interim approval from a Detroit bankruptcy court for a one-year debtor-in-possession financing facility of up to $100 million.
A final hearing on the DIP is set for Feb. 26.
The facility, which matures in one year and is administered by Boston-based Fleet Retail Finance Inc., will be used by Jacobson's in part to purchase merchandise and maintain essential business operations pursuant to its business plan. Specifically, the facility will be used to repay the debt outstanding on the company's $150 million pre-petition secured revolving credit facility, pay expenses associated with the new credit facility and for general corporate purposes set forth in the company's business plan.
The bankruptcy court also approved the retailer's request to close five underperforming stores located in Columbus and Toledo, Ohio, and Clearwater, Osprey and Tampa, Fla. The store closures are expected to affect 520 associates.
The Ozer Group of Needham, Mass., has been retained to conduct the store closing sales at all five locations. The sales, which began Wednesday, are expected to last for several weeks. Following the shuttering of the stores, Jacobson's will operate 18 sites.
As reported, Jacobson's filed its Chapter 11 petition on Jan. 15 in Detroit.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"