Classic Party Rentals in Final Stages of Completing Sale Agreement That Provides Strong Foundation for the Future
To Facilitate Agreement, Classic Voluntarily Files for Relief under Chapter 11. $20 Million in DIP Financing; Company to Operate Business as Usual
“LOS ANGELES, CALIFORNIA — FEB 14, 2014 – Classic Party Rentals, the nation’s leading event rental and services provider, today announced that it has signed an agreement through which substantially all of the business of Event Rentals, Inc. and its subsidiaries, d/b/a Classic Party Rentals, would be acquired by a newly established entity owned by the Company’s current lenders. (Download the entire Press Release)”
NEW, ANALYSIS and OPINION
In the event industry, reading news such as this, may cause you to utter “Uh oh…”
There is a dedicated website, ClassicTransaction.com, to explain the details for both Vendors and Clients. The site even contains a Glossary Section, so those without a law degree can understand the terms.
Here’s one word: DIP
DIP is an acronym for Debtors in Possession.
The press release is an amalgam of facts and spin. Depending on your point of view and/or involvement. If all goes well, the company survives their bankruptcy, with the fewest challenges, and we live happily ever after.
I wouldn’t wish this process on any business, its ownership, employees, clients or vendors. No matter how positive the explanation, there is an underlying uncertainty.
Whether you are involved, directly, or simply a member of the industry, I urge you to visit ClassicTransaction.com and follow ongoing industry news. Personally, I’m curious to better understand how/why Classic Party Rentals reached this precarious position.
- Was it too much optimism, accompanied by badly timed expansion?
- Was it poor management?
- If bad decisions have been made, in retrospect, how could the company have made better choices? (I assume they would have made different choices)
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