Walking Company Holdings filed with the U.S. Bankruptcy Court Exhibit B to the Disclosure Statement for the Debtors’ Joint Plan of Reorganization.
The notice states, “Exhibit B to the Disclosure Statement was not finalized at the time of filing as the Debtors were still in the process of reviewing the liquidation and recovery analysis. This review has now been completed and attached as Exhibit B to the Disclosure Statement.” The exhibit notes, “In preparing this Liquidation Analysis, the Debtors have preliminarily estimated an amount of Allowed Claims for each indicated type of Claim based upon a review of the Debtor’s estimated balance sheet….This hypothetical liquidation analysis assumes that the Chapter 7 trustee would sell the estate’s remaining owned inventory to a third-party liquidation specialist who would provide the Chapter 7 trustee with cash equalling the estimated gross purchase price of the owned merchandise inventory, less projected operating costs of the liquidator pertaining to the going-out-of-business sales using the Debtors’ employees, retail store locations and ecommerce websites.”
In addition, “This appraisal specialist concluded that the Debtors would likely recover, on a net basis, (a) approximately 77.3% of the cost value of its footwear merchandise inventories at its stores and distribution center if such a court-ordered going-out-of-business sale was conducted beginning in July 2018 and continued for approximately 15 weeks, and (b) approximately 54.5% of the cost value of its Big Dog apparel merchandise inventories if such a court-ordered going-out-of-business sale was conducted beginning in July 2018 and continued for approximately 16 weeks.”
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