Samsonite Company Stores Announces Plan to Realign Retail Store Portfolio
Plan to be Facilitated Through a Pre-Packaged Chapter 11 Proceeding
Plan of Reorganization is Filed; Creditors to Receive 100% of Claims;
No Impact to Customers; Exit Anticipated Within 45-90 days
Mansfield, MA—September 2, 2009—Samsonite Company Stores, LLC (“Company”), the U.S. retail division of Samsonite Corporation, the worldwide leader in innovative travel solutions, today announced a reorganization plan to streamline its high street and regional mall store portfolio, and concentrate its activities in the more profitable outlet store business, resulting in a significant reduction in the number of its operating stores. The Company filed a petition for relief under Chapter 11 of the Bankruptcy Code, as well as a Pre-Packaged Plan of Reorganization. The Company anticipates exiting from bankruptcy within 45-90 days.
Samsonite Company Stores’ reorganization is part of the Samsonite Corporation out-of-court, global restructuring, which is being undertaken with the support of its primary stakeholders, and augments numerous initiatives aimed at reducing costs across Samsonite’s worldwide enterprise. Samsonite Corporation is not included in the Samsonite Company Stores Chapter 11 filing.
Samsonite Company Stores, which leases and operates 173 stores in the United States, believes that the Chapter 11 case, halving its store count and streamlining of its operations will help return the Company to profitability on a sustainable basis.
“The recession has caused a severe decline in consumers purchasing travel-related goods and the Company has responded to this critical situation with a substantial restructuring program.” said Kyle Gendreau, Secretary and Treasurer of Samsonite Company Stores, LLC and Chief Financial Officer of Samsonite Corporation. “Realigning the Company’s real estate portfolio will increase profitability, allowing us to further capitalize on growth opportunities and to secure the Company’s future.”
Customers, vendors, and other Samsonite Company Stores partners can be assured that day-to-day operations will continue uninterrupted. The Company intends to seek Bankruptcy Court approval to continue all existing customer programs, including warranties, gift cards, returns and exchanges, maintain current employee benefit and payroll programs, and pay its vendors and manufacturers in full for outstanding and future invoices.
Samsonite Company Stores filed its Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware in Wilmington.
About Samsonite Company Stores, LLC
Offering superior travel bags, luggage and accessories, under the Samsonite, Samsonite Black Label, and American Tourister brands, Samsonite Company Stores operates full-price and outlet stores in 38 states across the U.S. The Company is a wholly-owned subsidiary of Samsonite Corporation.
About Samsonite Corporation:
Samsonite is the worldwide leader in superior travel bags, luggage and accessories, combining notable style with the latest design technology and the utmost attention to quality and durability. Samsonite creates unparalleled products that fulfill the travel and lifestyle needs of the sophisticated traveler. For 98 years, Samsonite has continued to build upon its rich design heritage. Samsonite markets products under the Samsonite, Samsonite Black Label, and American Tourister brands.
Contact: Jennifer E. Mercer
Van Meter Consultants
Jennifer C. Betti
Van Meter Consultants