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The Rockport Company Store Closing Approval Sought

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The Rockport Company filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the Debtors to (a) conduct store closing sales at their North American retail locations and (b) pay store closing bonuses to employees at the store closing stores.

The motion explains, “The Debtors have determined that, in the exercise of their business judgment and in consultation with their advisors, implementing the Store Closing Sale Guidelines will provide the most timely and efficient means for maximizing the value of the Store Closing Sales and the North American Retail Assets….The Debtors seek authority to pay the Store Closing Bonuses to non-insider store-level employees who remain employed at a Closing Store through the conclusion of the Store Closing Sale at such Closing Store.  The Debtors believe that allowing the Store Closing Teams to earn Store Closing Bonuses will provide much-needed motivation for key store personnel who are critical to the success of the Store Closing Sales. The Debtors believe that, absent such bonuses, the Debtors are likely to lose such key personnel at the Closing Stores at a time when the Debtors have few resources available to search for new employees, which would unnecessarily delay or frustrate the Store Closing Sales and hamstring the Debtors’ efforts to maximize the value of the North American Retail Assets. On balance, the Debtors believe that the costs to the Debtors of the Store Closing Bonuses are far outweighed by the benefits such Store Closing Bonuses are likely to produce in the form of maximum productivity and cooperation during the Store Closing Sales, resulting in higher revenues in a shorter timeframe.  The Debtors estimate that the aggregate cost of the Store Closing Bonuses will not exceed $300,000.” The Court scheduled a June 5, 2018 hearing to consider the store closing motion with objections due by May 29, 2018.

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