PxPixel
Tweeter Follows Up Chapter 11 with 'For Sale' Sign - ResidentialSystems.com

Tweeter Follows Up Chapter 11 with 'For Sale' Sign

A sale to private investors could be in the works for Tweeter Home Entertainment Group, which files for bankruptcy protection on Monday.
Author:
Publish date:

Canton, MA--According to a report from twice.com, a sale to private investors could be in the work for Tweeter Home Entertainment Group, which plans to solicit bids from several interested parties before the end of the month.

In the article (www.twice.com/article/CA6451195.html?nid=2402), twice.com reports that the buyout, which could close within the next eight weeks, is one of several scenarios outlined by the ailing A/V specialty chain in its petition for Chapter 11 bankruptcy protection, filed yesterday. In the document, chief financial officer Gregory Hunt said the company would entertain any and all restructuring alternatives, including a refinancing, an equity investment or a sale.

Tweeter said it had hired investment banking firm Peter J. Solomon Co. to help find investment capital, strategic partners or a potential buyer, and has since received interest from several third-parties that president/CEO Joe McGuire described in a conference call as hedge funds.

According to the filing in U.S. Bankruptcy Court for the District of Delaware, Tweeter is seeking Chapter 11 protection in order to access a $60 million debtor-in-possession (DIP) credit facility from GE Capital. The increased liquidity is a prerequisite for entering into a definitive agreement with a potential buyer, and will also allow the retailer to continue regular business operations.

Related