Coldwater Creek has acquired Soft Surroundings.
Soft Surroundings will live on — digitally.
Coldwater Creek has acquired Soft Surroundings’ direct-to-consumer business, which will continue online (at softsurroundings.com). The sale was facilitated by global asset experts Gordon Brothers.
The women's apparel and lifestyle brand filed for Chapter 11 bankruptcy in September and said it would focus on its e-commerce business going forward. In November, Soft Surroundings began chain-wide closing sales at its 43 stores.
Gordon Brothers had provided Soft Surroundings a $17 million term loan to pursue a sale process and $18 million in debtor-in-possession financing for its plan of reorganization. The firm previously supported the completion of Soft Surroundings’ inventory transition to a Mexican-based third-party logistics warehouse service.
“In pursuing the acquisition of Soft Surroundings’ direct-to-consumer business, we greatly benefitted from Gordon Brothers’ partnership over the last few months, their expertise and all-encompassing, tailor-made solution,” said David Walde, CEO of Coldwater Creek. “They not only provided capital, but the guidance and expertise needed to acquire the business through the company’s bankruptcy proceeding at an accelerated pace, thereby saving jobs, maximizing value, and working with all parties to ultimately change the lens in how we had initially approached the opportunity.”
In 2020, Newtimes Group, one of world’s largest supply providers to the apparel industry, acquired Coldwater Creek parent company CWC Companies from Sycamore Partners. Sycamore had acquired the Coldwater Creek brand and other intellectual property in 2014 and relaunched the business as a direct-to-consumer brand.
In facilitating the Soft Surroundings sale. Gordon Brothers said it leveraged its integrated service offering to provide capital, expertise and guidance on the sale process prior to, during and post-bankruptcy, maximizing value for all stakeholders.
“With our deep expertise, 120-year history working with retailers and knowledge of restructuring, we understood Soft Surroundings’ situation and intervened early to avoid a full liquidation,” said Kyle C. Shonak, senior managing director, transaction team and head of North America lending at Gordeon Brothers. “We advised both companies and navigated the formal restructuring process to maximize the value of the assets in which the retailers, their employees and their stakeholders all benefited.”