About Robbins Bros. > Press & Media > In the News > Robbins Brothers Files Chapter 11 Bankruptcy With Asset Purchase Agreements
Robbins Brothers Files Chapter 11 Bankruptcy With Asset Purchase Agreements
Robbins Bros. Corporation - "World's Biggest Engagement Ring Store®" - announced on March 3rd, 2009 that it filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. Chapter 11 allows the Company to continue operating in the ordinary course of business while it addresses its financial affairs. The Company will remain in control of its operations and continue to focus on helping couples find their perfect engagement rings.
As part of the process, the Company has entered into two separate asset purchase agreements: one with Spence Diamonds, Inc., a premier diamond and jewelry retailer with locations across Canada, with respect to the sale and purchase of the Company's Chicago-area stores and certain Houston-area stores; and a second agreement with an affiliate of one of the Company's investors for the sale and purchase of substantially all of the other assets of the Company. As required by the Bankruptcy Code, these proposed sale transactions will be subject to Bankruptcy Court supervision and overbidding by any other prospective purchasers. The Company's main senior lender, Wells Fargo Bank, N.A., supports these transactions, subject to an overbidding process.
"Filing under Chapter 11 was the best way for Robbins Bros. to accomplish these transactions for the benefit of the Company's customers, employees, suppliers and business partners, and to ensure that the Company's creditors are treated fairly. During this process, the Company's business and operations will continue as usual, and customers can be assured that Robbins Bros. will continue to offer exceptional products and service to its customers," stated Andy Heyneman, President of Robbins Bros.
