NEWTON, Mass., May 16, 2018 — The Rockport Group, LLC (the “Company” or “Rockport“), a leader in men's and women's footwear since 1971, today announced that the Company has received approvals from the U.S. Bankruptcy Court for Delaware for all of its First Day motions, which will support Rockport's business operations as the Company completes its previously announced court-supervised sale process.
The Court has granted Rockport interim approval to access up to $10 million in new debtor-in-possession (“DIP”) financing from its existing noteholders, in addition to its existing $60 million credit facility. Among other First Day orders, the Company also received authorization to continue to pay employee wages and benefits, honor customer commitments and otherwise manage its day-to-day operations in the ordinary course through the sale process.
All of the Company's businesses around the world are open and operating in the normal course, including the Company's wholesale operations and retail stores in Japan, Korea, China and Hong Kong, as well as in Europe, Canada and the U.S. Customers can continue to shop Rockport's exceptional quality brands and diverse assortment of footwear at leading department stores and specialty retailers around the world, as well as through the Company's e-commerce platform and retail locations.
As previously announced, Rockport has entered into an asset purchase agreement (“the agreement”) with CB Marathon Opco, LLC an affiliate of Charlesbank Equity Fund IX, Limited Partnership (“Charlesbank”), pursuant to which Charlesbank will acquire substantially all of Rockport's assets. The agreement with Charlesbank includes Rockport's global wholesale assets, e-commerce platform and retail operations in Asia and Europe.
To facilitate the sale, Rockport and its U.S. and Canadian subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for Delaware. The transaction is being undertaken pursuant to Section 363 of the U.S. Bankruptcy Code. Accordingly, Charlesbank is serving as the “stalking horse bidder” in a court-supervised sale process, and the agreement is subject to higher and better offers, among other conditions.
Rockport intends to pay for all goods and services delivered on or after May 14, 2018 in the normal course. Payment for goods and services delivered to the U.S. and Canadian entities prior to the filing will be addressed through the Chapter 11 process. Under the terms of the agreement, Charlesbank will assume responsibility for payment of certain pre-petition obligations to product suppliers of the acquired assets.
Additional information regarding Rockport's sale process and restructuring is available at www.rockportrestructuring.com. Court filings and information about the claims process are available at https://cases.primeclerk.com/rockport, by calling Rockport's claims agent, Prime Clerk, at 844-224-1137 (or 917-962-8896 for international calls) or sending an email to [email protected].
Richards, Layton & Finger PA is serving as legal counsel to Rockport. Alvarez & Marsal is serving as restructuring advisor and Houlihan Lokey, Inc. is serving as investment banker and financial advisor.
About The Rockport Group
The Rockport Group is home to the Aravon, Dunham and Rockport brands and the popular Rockport Cobb Hill Collection. With its diverse assortment of men's and women's footwear, products from The Rockport Group can be found in various retail channels in more than 60 countries worldwide. Headquartered in the greater Boston area, The Rockport Group is committed to its history of innovation and a consumer-centric approach to style, fit and comfort. For more information, visit www.rockport.com.
Michael Freitag / Leigh Parrish
Joele Frank, Wilkinson Brimmer Katcher
SOURCE The Rockport Group