🛏️ New Chapter 11 Bankruptcy Filing - Pegasus Home Fashions Inc. 🛏️

Bedding manufacturer files BK to pursue an expedited going concern sale.

On August 24, 2023, NJ-based Pegasus Home Fashions Inc. and three affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the District of Delaware (Judge Walrath). The debtors manufacture bedding and home products, i.e., pillows, bedspreads, blankets, etc, selling through a variety of channels including big box players such as Walmart Inc. ($WMT); in addition to selling its own proprietary brands, the debtors also manufacture for licensed brands, including Martha Stewart, Beautyrest and once-bankrupt BCBG Max Azria.*

What’s on top of that equity? Well, the debtors have $15mm outstanding under their pre-petition ABL (agented by Webster Bank) plus $60.8mm under their pre-petition term loan (exclusive of a potential prepayment premium claim of $7.6mm) provided by Blue Torch Finance LLC (“Blue Torch”) which, at this point, might want one of those bankruptcy punch cards so that it gets its tenth bankrupted “credit” free. There is also approximately $8mm of trade debt.**