Privately-held U.S.-based kitchenware company Sur La Table has filed for Chapter 11 Bankruptcy protection. The 50-year-old seller of high-end cutlery, cookware, and other kitchen products submitted its bankruptcy filing on Wednesday. On the same day, the company also announced that it was in the process of trying to find a suitable buyer for the company.
In a press release published after it filed for bankruptcy protection, the Seattle-based company revealed plans of shutting down a large portion of its US outlets. The company has around 184 outlets in 32 states across the country. Apart from its brick-and-mortar stores, the company also sells its wide-range of kitchen products online.
The company stated that it will likely be permanently closing around half of its US stores. Sur La Table, which is "on the table" in French, is also well-known for its in-store cooking classes. Both its retail business and its cooking classes were heavily affected after the pandemic had hit the US earlier in the year. In March, the company was forced to close down all of its locations, which had placed a heavy burden on its finances.
Sur La Table's chief executive officer, Jason Goldberger, mentioned in a statement the decision the sell the company was made to save the brand and to ensure its continued survival. He added that by selling the company, its survival in the post-pandemic era will at least be ensured. During the bankruptcy process, the company will be working further to optimize its balance sheet and retail footprint, which will entail massive job cuts, store closures, and operational changes.
Goldberger expressed his optimism for the company's prospects in the coming years, explaining that demand for its high-end cooking products and in-home entertainment will always be present. He believes that as more and more people chose to cook and eat at home as opposed to eating out, demand for its products and services is set to still grow in the coming years.
In regards to its sale, the company revealed that it has entered into a "stalking horse" agreement with investment firm Fortress. The agreement essentially means that Fortress is submitting an advanced bid for the bankrupt company prior to its actual auction. The amount offered, which was not disclosed, will act as an effective reserve bid. Sur La Table is still open to other buyers who can make them a better offer.
Sur La Table is the latest major retailer to file for bankruptcy in the US, following months of continued store closures. In recent months, major companies such as Brooks Brothers, Neiman Marcus, and JC Penney have filed for bankruptcy protection.
