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


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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