WARREN – Bluestem Brands, the owner of a Warren based apparel manufacturing company, announced Monday it has filed for Chapter 11 bankruptcy.
The corporate group owns Warren Pennsylvania’s Blair Corporation, a men’s and women’s apparel factory and store.
Bluestem’s bankruptcy petition calls for 125 million in financing from an unnamed outside bidder who plans to buy and restructure the company.
“We are using Chapter 11 to maximize the value of our business and have entered into a stalking horse purchase agreement with a syndicate of term-loan lenders, which provides us a clear path to strengthen our business for continued success,” said Brice Cazenave, Bluestem’s CEO in a statement. “We will emerge from Chapter 11 as a stronger company, with a clear brand focus and the opportunity to realize the full potential of the company.”
According to the press release, the company does not expect call or distribution center operations to be interrupted throughout the process.
Chapter 11 bankruptcy is a reorganization plan frequently used by large companies, allowing them to stay active while repaying creditors.
Bluestem Brands is headquartered in Eden Prairie, Minnesota. The company also owns Fingerhut.com and several other brands.