Turning to Cole Schotz P.C. as its restructuring counsel, member-only buying club DirectBuy filed for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware on November 1st. The 40-year old company with operations in the United States and Canada provides its almost 180,000 members exclusive access to a broad selection of well recognized brands from tip-tier suppliers, offering furniture flooring and tile, lighting and fans, appliances, and outdoor living products at wholesale prices. DirectBuy is famous for its one-of-a-kind shopping experience that includes free at-home design consultation, digital or over-the-phone project support, seven days per week access to a call center, and “white glove” delivery service. While the company reports that it is financially sound, it is unable to sustain existing levels of debt or attract adequate refinancing and, therefore, is pursuing a going concern business sale to restructure nearly $200 million in debt.
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