Tweeter Files Under Chapter 11
The struggling electronics retailer Tweeter announced Monday that it will restructure its operations under Chapter 11. The Massachusetts-based company filed petitions in Delaware, under the U.S. Bankruptcy Code, with an eye toward “[addressing] its financial challenges and [supporting] its ongoing efforts to evolve its home installation and services business model,” Tweeter announced in a statement.
The company, the statement said, plans no store closings, and will honor all existing contracts, employee wages, and other obligations.
Concurrently, Tweeter announced that it has taken out a $60 million debtor-in-possession sloan from General Electric Capital Corp., in order to meet payroll, purchase inventory, and perform other corporate functions.