Le Tote gets OK to pay maximum of $1.35 million to key executives

By Sarah Lizee

Olympia, Wash., Sept. 30 – Le Tote, Inc. received court approval to implement a key employee incentive plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The maximum total cost of the incentive plan is $1.35 million.

According to the motion, KEIP participants are seven members of the Le Tote debtors’ management team, including chief restructuring officer Ed Kremer, chief financial officer Dan Mickelson, general counsel Michael van den Berg, vice president and director of stores Robert Wehrle, Le Tote president Rakesh Tondon, chief digital officer Brett Northart and chief technology officer Charles Bowman.

Performance metrics and milestones that must be met by the KEIP participants include confirmation of a plan of reorganization, recovery to holders of ABL and FILO claims and, for the Le Tote debtor participants, metrics based on plan value or proceeds.

New York-based Lord & Taylor, a unit of Le Tote, operates fashion stores in the United States. The company filed bankruptcy on Aug. 2 under Chapter 11 case number 20-33332.

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