Service Merchandise Board Approves Chapter 11 Filing

Share this content:
The board of Service Merchandise, Nashville, TN, voted in favor of filing Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in the Middle District of Tennessee yesterday following a petition Monday night by five of its key vendors.

Service Merchandise which employs about 25,000 people, has experienced continued financial problems in recent years. And just last month the company made a decision to close over 100 stores followed by an announced layoff of 300 employees two weeks ago.

But yesterday the struggling cataloger said that it expects to keep all remaining retail outlets open and running without interruption from this point forward unless the court orders it to act otherwise. It also indicated that Citicorp U.S.A., the company's revolving credit facility would continue with its extension of $50 million in credit in the face of the involuntary filing.

In published reports, Bettina Whyte, CEO was quoted as saying "Our stores will be open for business as usual. We intend to operate our businesses vigorously and to meet our customers' needs."

She also assured that the company's payroll would be met and that there would be no disruption in shipping of customer orders.

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above