New Delaware Chapter 11 Filing – NSC Wholesale Holdings, LLC
NSC Wholesale Holdings, LLC, along with six affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12394). The Debtors operate a chain of general merchandise closeout stores in the northeastern United States under the name “National Wholesale Liquidators.” According to the First Day Declaration, the Debtors have filed for chapter 11 relief as a result of several unexpected financial and operational setbacks, as well as the industry-wide headwinds facing brick and mortar retailers. The Debtors have filed a motion for continued use of their pre-petition cash collateral, a $20 million revolving loan from Capital One, NA. The Debtors are also seeking to assume a consulting agreement with a joint venture between Hilco Merchant Resources and Gordon Brothers, and to proceed with store closings and inventory sales. Omni Management Group is the proposed claims agent. The cases have been assigned to the Honorable Kevin J. Carey.
Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.
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