Mitchell Gold + Bob Williams filed for Chapter 11 bankruptcy today, less than two weeks after it ceased operations of its 27 retail locations and its North Carolina–based manufacturing facilities.
The filing, submitted to Delaware bankruptcy court this afternoon, lists between 200 and 300 creditors, which are owed between $10 million and $50 million. Among the list: logistics firms Transportation Insight and Ryder Last Mile; fabric powerhouse Kravet; leather purveyor Moore & Giles; and 3D product visualization firm Cylindo. The document states that MG+BW has between $10 million and $50 million in assets on hand.
As part of the restructuring plan outlined in its bankruptcy petition, the company said it will hire a chief restructuring officer—listed in the filing as Dalton Edgecomb, senior managing director of the consulting company Riveron—to carry out duties instructed by the company’s CEO or board. The filings also point to the hiring of M&A firm Stump & Company to supervise a potential sale of assets out of bankruptcy.
Speaking to Business of Home last week, Gold, who stepped down as the company’s CEO in 2019, said that the company’s abrupt shutdown was the result of a disagreement between its private equity owners, The Stephens Group, and its lender, PNC Bank, about how to finance its continued operations. The filings state that the company ceased taking deposits at all its retail locations and online on the morning of August 25, following PNC’s decision to deny further funding.
Founded in 1989 by Gold and Williams, the brand was well-liked by the trade and consumer audiences alike, and its abrupt closure was met with shock. Last week, Gold told BOH that he was actively looking for investors to finance a $20 million to $30 million revitalization of the company.
The filing hints that the company is still hoping for a buyer in some form, stating that MG+BW has secured debtor-in-possession financing—a type of loan for companies in bankruptcy that allow them to continue operating—“in order as it is able to preserve its assets” and has received “multiple third party expressions and indications of interest for groups of assets.”
Homepage image: Courtesy of Business of Home