Sur La Table files bankruptcy, to close 56 stores and sell 70 others

By Caroline Salls

Pittsburgh, July 8 – Sur La Table, Inc. filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of New Jersey.

After a review of the performance of its individual stores, Sur La Table said it plans to liquidate the assets in 56 of its stores and cease operations in those locations.

The company said it also plans to pursue a going-concern sale for up to 70 other stores.

A joint venture comprised of Great American Group, LLC and Tiger Capital Group, LLC has been selected as the consultant responsible for conducting the liquidation sales at the 56 closing store locations.

The consultant will receive a fee equal to 1.5% of the gross proceeds from the sale of merchandise, plus 15% of the proceeds from the sale of furniture, fixtures and equipment at the closing stores.

The store sales are expected to run through Aug. 31.

Sur La Table said in a news release that, with the support of its lenders, it has secured the necessary debtor-in-possession financing to complete the court process.

In addition, the release said the company has entered into a stalking horse asset purchase term sheet with affiliates of Fortress Investment Group, which is working in partnership with STORY3 Capital Partners.

Following the sale, the company said it will operate its successful retail stores, in-person and online cooking classes and e-commerce business.

“This sale process will result in a revitalized Sur La Table, positioned to thrive in a post Covid-19 retail environment,” Sur La Table chief executive officer Jason Goldberger said in the release. “Sur La Table will have a balance sheet and retail footprint optimized to position the company for a bright future.”

According to court documents, Sur La Table has $100 million to $500 million in both assets and debt.

The company’s largest unsecured creditors are Zwilling JA Henckels LLC of Pleasantville, N.Y., with a $2.24 million claim; Le Creuset of America of Early Branch, S.C., with a $1.93 million claim; and Scanpan USA, Inc. of Compton, Calif., with a $1.44 million claim.

Cole Schotz PC is representing Sur La Table in its Chapter 11 proceedings. Solic Capital is serving as financial adviser and investment banker, and Omni is serving as the claims agent.

Sur La Table is a Seattle-based home furnishing retailer. Its Chapter 11 case number is 20-18368.

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