NBC Acquisition Corp., parent company of Nebraska Book Company, got closer to emerging from Chapter 11 bankruptcy with Wednesday’s filing of a Second Amended Plan for Reorganization and Disclosure Statement. A hearing to approve the Disclosure Statement will be held on April 13 at U.S. Bankruptcy Court for the District of Delaware.
“This is an important step in our process,” said Nebraska president Barry Major. “We have spent a great deal of time working with our lenders and have reached an agreement with the bondholder’s steering committee; this is a sign of confidence in the future of our business.”
At the same time Nebraska filed a motion to close 38 off-campus stores, following the seven it closed at the beginning of the year. After Fall rush Nebraska found a “disproportionate decline” in its off-campus store performance, while on-campus sales held steady. In January it asked the court to approve 93 off-campus leases and for more time to evaluate another 43 during January and February rush.
“Unfortunately, the results of the Spring 2012 rush period clearly demonstrate that the Debtors’ off-campus stores continue to experience lower than anticipated financial performance,” noted Nebraska in Wednesday’s filing. The company anticipates a cost savings of approximately $3.1 million per year from rejection of the leases. A hearing on the store closings, which are slated to take place by March 31, will be held on March 22.
