In a thrilling turn of events, a Texas bankruptcy judge, Christopher M. Lopez, handed down approval for Soft Surroundings, the renowned women’s apparel retailer, to proceed with its Chapter 11 plan. The decision comes with a burst of perplexity as the company navigates a financial storm, including a $22.7 million sale of its e-commerce platform and a $400,000 settlement for its unsecured creditors.
Soft Surroundings Files for Bankruptcy: Support from All Quarters
This twist in the tale unfolded during a brief hearing, where Judge Lopez gave the green light after receiving assurances of unanimous support from all voting creditors and the unsecured creditors committee. St. Louis-based Soft Surroundings had entered Chapter 11 on September 10, shackled with a staggering $68.9 million in debt.
A Strategic Deal and Unprecedented Resilience
In a move that can only be described as an extraordinary feat of financial strategy, Soft Surroundings had struck a deal with its lenders to shutter its brick-and-mortar stores and sell its online business to retail titan Coldwater Creek. This deal was all part of a meticulously planned restructuring support agreement that was executed before the Chapter 11 filing.
