CLOTHESTIME GETS OK FOR $8 MILLION OF DIP FINANCING
NEW YORK — The Clothestime Inc., the 537-store women’s off-price chain reorganizing under Chapter 11, received bankruptcy court approval last week on $8 million of its total $40 million debtor-in-possession financing package.
The financing deal is with CIT Group/Business Credit Inc. A hearing is set for Jan. 8 to gain approval of the entire deal.
Clothestime, which filed for Chapter 11 protection Dec. 8, got court approval last month to close 137 underperforming stores by Jan. 31. The stores to be shuttered will drain $2.7 million from the operation for the year ended Jan. 27, according to court papers.
The remaining stores have a $29.3 million positive cash flow, the same court papers show. — Fairchild News Service