Bluestem Files For Chapter 11
EDEN PRAIRIE -- Bluestem Brands, the Minnesota-based retail and fulfillment company with a large footprint in St. Cloud, announced Monday it has filed for Chapter 11 bankruptcy.
Chapter 11 bankruptcy is a reorganization plan frequently used by large companies, allowing them to stay active while repaying creditors. Bluestem's petition includes $125 million in financing from an unnamed outside bidder who plans to buy and restructure the company, according to a news release from the company.
"We are using Chapter 11 to maximize the value of our business and have entered into a stalking horse purchase agreement with a syndicate of term-loan lenders, which provides us a clear path to strengthen our business for continued success," said Brice Cazenave, Bluestem's CEO. "We will emerge from Chapter 11 as a stronger company, with a clear brand focus and the opportunity to realize the full potential of the company."
According to the release, Bluestem does not expect call or distribution center operations to be interrupted throughout the process.
WJON has reached out to the company for specific details on St. Cloud operations.
Last November, Bluestem laid off 33 full-time and 23 contract employees from their Northstar Customer Care division, a region which includes St. Cloud.
Bluestem Brands, headquartered in Eden Prairie, reported over 2,900 employees and does roughly $2 billion in sales in 2019.
This story will be updated - check back for more.