School Specialty Inc. (SCHS), a once-popular distributor of non-textbook school supplies including art materials and classroom equipment, filed for Chapter 11 bankruptcy last week.
According to Bloomberg News, the company based in Greenville, Wisconsin, listed $494.5 million in assets and $394.5 million in debt in its bankruptcy paper filed in the U.S. Bankruptcy Court in Wilmington, Delaware.
“We fully expect to continue normal business operations, providing quality, value-driven education products and excellent customer care and programs,” the company’s chief executive officer, Michael P. Lavelle said.
Bloomberg reports that the company has an asset purchase agreement with Bayside Capital Inc. for a proposed sale with competitive bidding supervised by the court, and Bayside will provide a $50 million loan.
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Judd’s Judgment: A Chapter 11 bankruptcy allows a business to maintain operations and remain in control of its assets, while looking for potential investors or buyers.