Classic Party Rentals filed chapter 11 papers in U.S. Bankruptcy Court in Wilmington, Del., on Feb. 13.
Based in Inglewood, Calif., Classic listed more than $100 million each in assets and debt in the bankruptcy filing, according to Bloomberg.com.
In a letter posted on the dedicated website classictransaction.com, Jeff Black, president and CEO, writes, “We want to let you know that on February 13, 2014, Classic announced that it is in the final stages of completing an agreement through which substantially all of the Companyâ€™s business would be acquired, its debt would be substantially reduced and a stronger foundation for our future would be established. We also made the decision to voluntarily file for relief under chapter 11 of the United States Bankruptcy Code in order to put our financial challenges behind us and help complete the expected sale transaction in an orderly manner.”
He continues, “In conjunction with our chapter 11 filing, Classic obtained commitments for $20 million in new debtor-in-possession (DIP) financing. This financing, in addition to our existing resources, will ensure we are able to continue meeting our financial obligations incurred while in chapter 11, including paying our vendors in the ordinary course of business for all goods and services delivered to our company on or after February 13.”
Classic expects to operate as usual during the transition, and all events will be fulfilled, he writes. As the largest U.S. tent rental and event company, Classic has 39 showrooms and warehouses and more than 2,500 employees, according to Bloomberg.