RUMOR MILL
Amid rumors that more store closings are on tap, the 175-store Torrance-based chain is going through what insiders are characterizing as "normal bankruptcy machinations" as they ready their reorganization plan for a June 9 court date.
Thursday, May 29, 2003
WHERE OH WHEREHOUSE?
Reorganization Continues for Retailer As It Wends Its Way Through Chapter 11
There’s more changes afoot at Wherehouse Music.
Currently working through a Chapter 11 restructuring process, the retailer today let go some 29 employees from its home office and distribution center.
Amid rumors that more store closings are on tap, the 175-store Torrance-based chain is going through what insiders are characterizing as "normal bankruptcy machinations" as they ready their reorganization plan for a June 9 court date.
The company and senior lender Congress Financial had just recently received court approval for over $40 million in DIP (debtor in possession) financing. The current round of layoffs included 18 people from the home office, mostly from the purchasing staff, most notably 15-year vet Matt Bailey, who had most recently been serving as genre buyer.
