Bankrupt Tweeter Given New Life6 Sep, 2007 By: Erik Gruenwedel
Tweeter Newco LLC has received $80 million in new financing.
The funding includes a $60 million asset-based loan facility from Wells Fargo Retail Finance LLC and a new $20 million term loan from Schultze.
Tweeter will use the funds to acquire product for its 102 stores during the fourth quarter, according to company officials.
The Canton, Mass.-based specialty electronics retailer was acquired in July in a bankruptcy auction by private equity firm Schultze Asset Management.
“Tweeter is lucky at this point to have the opportunity to start with a clean slate and a fresh start,” said George Schultze, chairman of the board.
Schultze acquired the bulk of Tweeter's assets for $38 million, including $8 million in outstanding lease (cure amount) agreements. The company also extended Tweeter a $10 million line of credit.
Tweeter in June filed for financial reorganization under Chapter 11 of the U.S. Bankruptcy Code. The chain had reported $1.9 million in available cash with liabilities exceeding $95 million.