Shoes for Crews gets OK of bid procedures, DIP financing package

By Sarah Lizee

Olympia, Wash., April 29 – Shoes for Crews, LLC received approval of bid procedures for its assets and a $120 million debtor-in-possession financing package, according to two orders filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As a reminder, the company has lined up a stalking horse agreement with its prepetition first-lien lenders. The proposed purchase price includes a $290 million credit bid of debtor-in-possession financing debt and prepetition first-lien debt.

The bid deadline is May 17, an auction is scheduled for May 21 and a sale hearing is set for May 23.

The sale must close by June 17.

DIP financing

As previously reported, the DIP financing includes a $30 million new-money super-priority priming senior secured multiple draw term loan and a rollup of $83.83 million of prepetition first-lien loans and $6.17 million of prepetition sidecar credit agreement loans.

Antares Capital LP is the administrative agent and collateral agent for the DIP facility, which is set to mature in 150 days.

Interest for new-money DIP loans will be SOFR plus 600 basis points, and interest for rollup loans will be SOFR plus 800 bps.

There is a 5% commitment fee and a 2% unused commitment fee on new money. There is also a $250,000 fronting fee and $50,000 in administrative agency fees.

The company also received final approval to access the cash collateral of its lenders.

The Boca Raton, Fla.-based company filed bankruptcy on April 1 under Chapter 11 case number 24-10663.

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