The Titanic-era attire displayed in the window of J. Peterman’s Grand Central Station retail store in New York may foreshadow the fate of the upscale cataloger itself, which by next week may have sunk.
A spokesperson at the Lexington, KY, cataloger has confirmed news reports that J. Peterman has until Tuesday to find a buyer or liquidate its assets to pay nearly 1,000 creditors, according to an agreement signed by a bankruptcy judge.
The order, issued Feb. 16, allows Heller Financial Inc., J. Peterman’s only secured creditor, to lend the company $361,000 to remain open until next week. The spokesperson, who asked not to be named, couldn’t confirm whether that loan had been made.
“At this point, we have a catalog that is circulating and orders are being taken on that,” the spokesperson told DIRECT Newsline. “We are working with the inventory that we have.” The retail stores “are still open and are continuing to operate.”
The company’s president, John Peterman, told his approximately 400 employees that there were several potential buyers, but “if people want to take steps to find other positions, he understands that, because it is a tough time,” the spokesperson said. The cataloger is making payroll. No layoffs have been announced since “more than 25” employees were let go when the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of Kentucky Bankruptcy Court on Jan. 25.
Heller Financial already loaned the company $1.96 million last month and $408,000 this month. Heller, which was owed $7 million prior to the bankruptcy filing, told a judge that it could not keep lending J. Peterman money.
Matt Chilcutt, owner of the cataloger’s list brokerage and management company, Chilcutt Direct Marketing, Oklahoma City, which is owed about $100,000, said John Peterman had been in touch, but “he told us there’s not much that can be said until probably next Tuesday. I’m still optimistic that [a sale] could take place. But, it’s very hush-hush.”
