The J. Peterman Co., Lexington, KY, has received a $1.96 million loan through a primary creditor that will allow it to continue operations through Feb. 12, according to wire reports. The catalog-and-retail firm had filed for chapter 11 bankruptcy protection in the Eastern District of Kentucky Bankruptcy Court on Monday.
According to reports, bankruptcy judge William Howard is allowing the company to pay its employees, pay $235,000 owed to United Parcel Service, and to process returned and exchanged merchandise.
Peterman’s next hearing in bankruptcy court is scheduled for Feb. 8.
Published reports indicated that founder John Peterman was considering selling either the entire company, or a large part of it, to outside investors. Reportedly the potential sale of the company has received a substantial amount of interest.
Under motions granted by U.S. Bankruptcy Judge William Howard, the company will be able to pay its approximately 500 employees, pay $235,000 owed to United Parcel Service and process returned and exchanged merchandise which has been backing up since the holidays.
According to reports, papers submitted to the court as part of the filing listed assets of $35 million and liabilities of $40 million. Those liabilities include $8 million owed to General Electric Capital Corp, and “approximately $100,000” owed to Chilcutt Direct Marketing, Oklahoma City, which is Peterman’s list brokerage and management company. The figure includes fees for list owners and managers for lists ordered through Chilcutt.
About eight list managers and 13 list owners are owed money, according to Chilcutt.
Company representatives were not available for comment at deadline.
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