Source: Cache, Inc.
NEW YORK, Feb. 4, 2015 (GLOBE NEWSWIRE) -- CACHÉ, Inc. (Nasdaq:CACH) ("Company" or "CACHÉ"), a national omni-channel specialty retailer of women's apparel and accessories, today announced that it has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court ("Court) for the district of Delaware in Wilmington. The Company intends to continue to operate its business in the ordinary course during this time.
"We took this action today with the goal of securing CACHÉ's future," said Jay Margolis, CACHÉ Chairman and CEO. "Our team has been working tirelessly to implement a turnaround. In a short period of time, we upgraded key stores and closed unprofitable ones; launched a more vibrant and robust e-commerce site where conversion has doubled; and have seen same store comp sales from our 2014 Holiday season increase 9.5%, with this positive momentum continuing through January. However, the depressed brick and mortar retail market, the continued growth of online shopping, and rapidly changing consumer tastes and habits thwarted our efforts. Ultimately, we have not had the time or capital to realize all of the benefits of our hard work."
As part of these proceedings, the Company intends to further reduce its store count and sell and renegotiate certain of its leases. In addition, as part of its contingency planning, the Company and its representatives have sought proposals from experienced liquidators to serve as a stalking horse purchaser of the Company's assets. As CACHÉ is working toward a going-concern outcome, the stalking horse agreement would be subject to potential higher and/or better bids, and most importantly, potential going-concern bids, at a bankruptcy auction.
"We believe that this action provides CACHÉ the greatest opportunity to secure a strategic partner while maximizing recovery to our stakeholders," added Margolis.
As is customary, the Company is seeking authority from the Court to pay wages and salaries, continue employee benefit programs, pay vendors on an ongoing basis, and honor customer programs.
To fund operations during the proceeding, the Company has received a commitment for up to $22 million in debtor-in-possession ("DIP") financing from Salus Capital Partners, LLC. The DIP facility is subject to Court approval.
On January 27, 2015, CACHÉ received a letter from NASDAQ informing the Company that delisting procedures have been commenced. The Company does not intend to appeal the NASDAQ determination. Moreover, it is anticipated that CACHÉ's assets will be insufficient to satisfy all of its obligations to creditors. Accordingly, as provided under applicable law, it is expected that no distributions will be made to holders of the Company's common stock.
CACHÉ does not intend to comment further on these proceedings beyond this announcement and public Court filings at this time.
Pachulski Stang Ziehl & Jones LLP is serving as the Company's legal advisors, FTI Consulting, Inc. as its financial advisor, Janney Montgomery Scott LLC as its investment bank, and A&G Realty Partners, LLC as its real property advisors.
For access to Court documents and other general information about CACHÉ's Chapter 11 case, please visit www.kccllc.net/cache or call 866-967-0676 (toll-free) or +1-310-751-2676 outside of the U.S. and Canada.
About CACHÉ Inc. CACHÉ is a national omni-channel specialty retailer dedicated to dresses, sportswear and accessories designed for special occasions and daily glamour. The Company currently operates 218 boutiques each of which offers premier service and a high- touch shopping experience. Recognized as industry experts, CACHÉ has dressed fashionable women for over three decades. CACHÉ boutiques are primarily situated in center court locations in America's top malls in 40 states, the Virgin Islands and Puerto Rico.
Forward-Looking Statements and Other Information Certain matters discussed within this press release may constitute forward- looking statements within the meaning of the federal securities laws. Although CACHÉ, Inc. believes the statements are based on reasonable assumptions, there can be no assurance that these expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward- looking statements due to a number of factors, including, without limitation, our ability to successfully implement our business strategy and to integrate new members of management, industry trends, merchandise and fashion trends, competition, seasonality, changes in general economic conditions and consumer spending patterns, factors specific to our Company and merchandise, such as demand for our merchandise and markdowns. Other important factors that may cause actual results to differ materially from those expressed in the forward- looking statements are discussed in our filings with the Securities and Exchange Commission (the "SEC"), including the section of our Annual Report on Form 10- K filed with the SEC on March 25, 2014 titled "Risk Factors." Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly.
Jennifer E. Mercer Epiq Strategic Communications 310-712-6215 ph