Spiegel Will Borrow $300M to Exit Bankruptcy

Share this content:
A group consisting of General Electric Co., Credit Suisse First Boston Corp. and J.P. Morgan Chase & Co. will lend Spiegel Inc. $300 million to pay creditors under a plan to exit bankruptcy, the Chicago Tribune reported yesterday.


Spiegel, Downers Grove, IL, filed a reorganization plan in February that calls for it to hand over control of Eddie Bauer -- its only remaining asset -- to creditors. Upon approval, a new parent company, Eddie Bauer Holdings Inc., will be created. It will be based in Redmond, WA.


According to an earlier report in The Wall Street Journal, Spiegel's exit from insolvency became possible when controlling shareholder and German billionaire Michael Otto agreed to pay $104 million to release himself from all claims related to Spiegel's downfall.


Along with relinquishing ownership of Spiegel, Otto will forgo repayment of $160 million in loans to Spiegel from his holding company in the months before Spiegel's collapse.


Spiegel filed for bankruptcy in March 2003 with $1.7 billion in debts. The company's namesake catalog and its Newport News catalog businesses were sold last summer to Catalog Holdings Corp., New York.


The latest round of loans includes $150 million from J.P. Morgan, $90 million from General Electric and $60 million from CSFB, according to the Tribune.


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's 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