Vestis Retail Group granted final approval of $125 million DIP loan

By Caroline Salls

Pittsburgh, June 1 – Vestis Retail Group, LLC received final court approval of a $125 million debtor-in-possession facility from existing lender Wells Fargo Capital Finance, LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the DIP financing, combined with cash from existing operations, will help ensure it is able to meet its financial obligations throughout the Chapter 11 process.

The DIP facility will mature on the earliest of Aug. 18, the effective date of a plan of reorganization, the closing of a sale of all or substantially all of the company’s assets and properties, conversion of the Chapter 11 case and termination of a specified agreement.

Interest will accrue at the base rate plus 350 basis points.

Meriden, Conn.-based Vestis was formed by Versa Capital Management, LLC and operates retailers Eastern Mountain Sports, Bob’s Stores and Sport Chalet. The company filed bankruptcy on April 18 under Chapter 11 case number 16-10971.

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