LRC serves as co-counsel to Destination Maternity Corporation and its affiliates (collectively, “Destination Maternity”). Destination Maternity was the premier source for maternity wear for American women and was the largest national omni-channel maternity apparel retailer, operating under three retail nameplates: Motherhood® Maternity, A Pea in the Pod® and Destination Maternity®. As of the date of filing of their chapter 11 cases in the United States Bankruptcy Court for the District of Delaware (the “Chapter 11 Cases”), Destination Maternity operated approximately 436 stores across 49 of the 50 U.S. States, Canada and Puerto Rico; operated 423 leased departments within Macy’s, buybuyBaby and Boscov’s; sold inventory to 92 international franchisors; operated an e-commerce platform; and employed over 3,200 employees. In connection with the Chapter 11 Cases, LRC advised Destination Maternity regarding all issues associated with the Chapter 11 Cases, including various operational issues and with respect to going-out-of-business sales at its retail locations. LRC also advised Destination Maternity with respect to a stalking horse asset purchase agreement with Marquee Brands, LLC (“Successful Buyer”) and a contractual joint venture between Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC and achieved expedited approval of the agreement, which resulted in a streamlined sale process for the sale of certain of Destination Maternity’s assets to the Successful Buyer (the “Sale”) for over $50 million. The Sale was approved by the Bankruptcy Court on December 13, 2019, less than 8 weeks after Destination Maternity entered chapter 11, and closed on December 20, 2019. Following the closing, LRC negotiated multiple settlements regarding 503(b)(9) claims, which resulted in a total decrease in chapter 11 administrative claims of approximately $3,030,591. LRC’s post-closing efforts are focused on orchestrating a wind-down strategy. LRC continues to assist the company in winding down its remaining assets and formulating an exit strategy.
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