Gracious Home Announces Recapitalization as Part of a Pre-Arranged Reorganization

Online, August 13, 2010 (Newswire.com) - 1
Contact: Elizabeth Obloy
631-613-6657
[email protected]
Gracious Home Announces a Recapitalization
as Part of a Pre-Arranged Reorganization
New York, NY, - The Weck Corporation, d/b/a Gracious Home, today announced that it has entered into an agreement with a new investor, GH Acquisition, LLC (―GHAâ€-), which is an affiliate of Meridian Ventures, LLC (―Meridianâ€-), on the terms of a reorganization plan that will allow for the restructuring of its capitalization (the ―Investment Transactionâ€-) and implementation of future strategic initiatives. The Company has also entered into an agreement with NewAlliance Commercial Finance (which has acquired the senior secured loan from the Company's previous lender) who will be providing debtor-in-possession financing.
As part of the pre-arranged reorganization, the Company and its affiliates have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The Company will also be filing shortly its Plan of Reorganization, and will be seeking Bankruptcy Court approval for emergence from Chapter 11 via a multi-party sponsorship, including the Company, GHA and the Company's current owners and certain senior management. The Investment Transaction will be subject to higher or better offers by qualified investors in connection with a plan sponsor process conducted by the Company's financial and real estate advisor, Triton Equity Partners, LLC (―Tritonâ€-), to be approved by the Bankruptcy Court.
"We want to assure our customers, our employees, our suppliers and our community that Gracious Home is operating - business as usual," Jordan Smilowitz, President and Chief Operating Officer, stated. "Our customers can continue to rely on Gracious Home whether shopping in our stores or on our website, for the depth of merchandise assortment and services.â€-
Gracious Home anticipates no disruption in day-to-day activities as the Company positions itself to obtain Court confirmation of its Plan of Reorganization on an expedited basis. Over approximately the past 100 days, the Company has:
Engaged Triton as the Company's financial and real estate advisor; and Hahn & Hessen, LLP as counsel for the reorganizational process.
Entered into an agreement with GHA to provide new capital and leadership for the organization.
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Named Meridian principals Thomas C. Shull its Chief Executive Officer and Paul Jen Senior Vice President of Strategic Planning.
Initiated an overall restructuring plan to achieve operational efficiencies and infusion of new capital.
Completed arrangements with NewAlliance Commercial Finance for providing financing during the pendency of the Chapter 11 to allow the Company to ensure liquidity and continued deliveries of merchandise.
Set in motion a future strategic plan to be implemented by senior management team Tom Shull, CEO; Natan Wekselbaum, Chairman (and the Company's founder); and Jordan Smilowitz, President & COO.
"The filing of this pre-arranged Chapter 11 is a necessary and responsible step that will strengthen the Company and foster a sustained future at Gracious Home; and this milestone marks a fundamental and comprehensive changeâ€-, Smilowitz said. ―Our customers, employees, suppliers and the community want the Company to succeed because of the value Gracious Home continues to provide to New York City, the metropolitan region and the overall marketplace.â€-
"We intend to emerge from these proceedings with a significantly improved balance sheet and, consequently, greater operating flexibility. I am confident in Gracious Home's future. The new direction we have set is comprehensive, and our product assortment will continue to be expansive and our dedication to customer satisfaction unwavering.â€- Smilowitz added.
The Chapter 11 filings were made today, August 13, 2010, in the U.S. Bankruptcy Court for the Southern District of New York.
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Gracious Home is the premier New York City resource for quality home products, distinctive personal service and unique gifts.
Launched as a modest hardware and housewares store in 1963, today Gracious Home stocks an astonishing variety of goods, ranging from the proverbial nuts and bolts of hardware supplies to dazzling crystal finials imported from France, to the finest linens from around the world, to hard-to-find needlepoint tissue-box holders, to everyday items, like clothes hangers and everything else for the closet and for the home.
Gracious Home stocks more than 175,000 items for the home in three Manhattan locations: East Side, West Side and Chelsea. The Company also operates a web-based business under GraciousHome.Com, offering a wide assortment of merchandise that is only a click away.
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Gracious Home's services are second to none. The Company's educated and caring staff provides knowledgeable guidance, whether you are looking for wall sconces, window treatments, or wedding invitations.
If you need solid, technical information about choosing appliances, lighting and electrical supplies, decorative hardware, or specialty paint products, Gracious Home's experienced staff will guide you to a perfect selection. The Company will even assemble and install purchases.
And, because meeting customers' needs is so critical to Gracious Home, the Company offers an assortment of behind-the-scenes services - like rewiring lamps and chandeliers, repairing housewares and cutting keys.
Gracious Home | Look no further.
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