Sur La Table has filed for bankruptcy and will close more than 50 stores as part of the bankruptcy proceedings aimed to reduce the company’s expenses and help it recover from the financial impact of the COVID-19 crisis.
As the kitchenware retailer seeks bankruptcy protection, 56 of its 121 stores are being closed and of the 56, 51 are having liquidations sales, The New York Times reports.
Liquidation sales are expected to last 8-12 weeks, according to the retailer, and its well-known cooking classes will not be offered in stores that are closing, but will still be offered in select locations and online.
“This sale process will result in a revitalized Sur La Table, positioned to thrive in a post COVID-19 retail environment,” said Jason Goldberger, CEO of Sur La Table. “Sur La Table will have a balance sheet and retail footprint optimized to position the Company for a bright future that continues our nearly 50-year tradition of offering high-quality cooking products and experiences to our customers.”
Sur La Table has secured the necessary debtor-in-possession financing to complete the court process. The company contemplates the sale of Sur La Table retail stores after the closures and has entered into a stalking horse asset purchase term sheet with affiliates of Fortress Investment Group. Fortress is working in partnership with STORY3 Capital Partners.
Following the sale, the company will include its successful retail stores, in-person and online cooking classes, and its e-commerce business. Sur La Table resident chefs teach 60,000 cooking classes a year to more than 700,000 people in kitchens and now online.