In early 2020, Old Time Pottery operated approximately 45 retail stores, selling primarily home furnishings and décor. After being hit hard by the forced shut downs and other issues related to the COVID-19 pandemic, the company and its parent entity contacted Bass, Berry & Sims to restructure its debt and lease obligations. Old Time Pottery and OTP Holdings filed voluntary Chapter 11 cases in the Middle District of Tennessee in late June 2020 and emerged from bankruptcy with a confirmed plan of reorganization providing for new permanent exit financing and payment in full of allowed claims on November 2, 2020.
During this short pendency of the Chapter 11 proceedings, the debtors, with the assistance of Bass, Berry & Sims and the companies’ financial advisors FTI, obtained debtor in possession financing from a new lender, negotiated significant favorable modifications to the companies’ lease obligations, and obtained confirmation of the plan of reorganization providing for the continuation of the companies’ business at 41 retail locations with no change in ownership. As a result of this, the retailer was able to add more than 150 new jobs across stores, headquarters, and its distribution center. The company was able to repay its creditors 100% on account of their allowed bankruptcy claims.
The M&A Advisor named this matter the “Chapter 11 Reorganization of the Year ($10MM-$100MM)” winner at its 15th Annual Turnaround Awards. Read more about the award here.