Dean & DeLuca Inc. Bankrupts! PACE Expects a Turnaround after Financial Restructuring

Pace Development Corporation Public Company Limited (PACE) has announced that its indirect subsidiary, Dean & DeLuca, Inc., has gone under the financial restructuring via reorganization in Chapter 11 of the Bankruptcy Code to the United States Bankruptcy Court Southern District of New York.

 

PACE states that on 31 March 2020, at the local time of New York, United States of America, Dean & DeLuca, Inc. which is an indirect subsidiary of PACE filed the petition to enter into the financial restructuring via reorganization in Chapter 11 of the Bankruptcy Code to the United States Bankruptcy Court Southern District of New York.

PACE is of the opinion that Chapter 11 would allow Dean & DeLuca, Inc. to preserve its business value including the intellectual property. The reorganization will cause the smallest effect to the employee, customers and partners and will recover the business and can operate in the future.

The financial restructuring via the business reorganization mentioned above relates to Dean & DeLuca, Inc. that operates the business in the United States only while the licensees who operate Dean & DeLuca businesses in other countries will not be affected from this and shall continue the business normally.

For the effect to PACE, the company has clarified that the reorganization of Dean & DeLuca, Inc. will stop the recognizing of loss that may arise in the future from the business operation in the United States including the protection from the court procedure on management of liabilities of PACE so that it allows Dean & DeLuca, Inc. to operate the business in the future.