Latest news with #UnitedStatesBankruptcyCourt
Business Insider
4 days ago
- Business
- Business Insider
Sunnova Energy to lay off roughly 55% of workforce
According to a regulatory filing, on June 1, 2025, Sunnova TEP Developer, LLC, a Delaware limited liability company and wholly owned subsidiary of Sunnova Energy (NOVA) International, filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. The TEPD Filing is not expected to have a material effect on our servicing operations for existing customers. On May 29, 2025, the Special Committee of the Board of Directors of the Company approved a reduction in force, effective May 30, 2025, of approximately 718 employees, or approximately 55% of the company's workforce, in order to reduce the company's operating expenses and in an effort to preserve value for stakeholders. The company expects that, in connection with the Reduction in Force, the impacted employees will be provided earned wages and salary, earned but unused paid time off, and a severance payment calculated in accordance with the applicable employee's severance plan. At this time, the company is not able, in good faith, to make a determination of the estimated amount or range of amounts of all such costs and charges to be incurred as a result of the Reduction in Force. The company will file an amendment to this report upon the determination of such amounts. The expected completion date for the Reduction in Force is not currently known.
Yahoo
07-05-2025
- Business
- Yahoo
Rite Aid bankruptcy: What to know about store closings, prescription transfers, layoffs, gift cards, and more
Beleaguered pharmacy chain Rite Aid has officially filed for Chapter 11 bankruptcy protection after weeks of media reports suggesting that it was on the cusp of doing so. Most Read from Fast Company The bankruptcy is Rite Aid's second in two years, and it leaves a lot of questions for both customers and employees, including whether stores will be closing, if there will be layoffs, and what happens to customers' prescriptions. Here's what you need to know about Rite Aid's second bankruptcy. Why did Rite Aid file bankruptcy the first time? Rite Aid originally filed for bankruptcy in 2023. It emerged from the process less than a year ago, in 2024, with the hopes of being in a better financial position and on more resilient footing. But with its second bankruptcy filing yesterday, those hopes seem to have been dashed. To understand why Rite Aid is once again filing for bankruptcy, it helps to understand why the company originally filed for bankruptcy in 2023—something Rite Aid has laid out in detail in documents it filed with the United States Bankruptcy Court in the District of New Jersey today. Rite Aid cited multiple factors that necessitated its 2023 bankruptcy filing, including: 'suboptimal lease portfolio' of underperforming stores elevated labor costs increased costs from 'shrink' (theft) lower credit limits more restrictive payment terms from vendors reduced demand for its non-medication 'front end' products 'The lack of such inventory,' Rite Aid said, 'gave rise to a vicious cycle: high-margin front-end sales declined due to insufficient inventory, and lagging sales depleted liquidity and caused vendors to tighten trade terms even further.' The company's 2023 bankruptcy was meant to help the struggling pharmacy chain address the financial issues caused by these problems. But that's not the way things have played out since, which has led to the company filing its second bankruptcy this week. Why is Rite Aid filing for bankruptcy again? In a court document, Rite Aid said that its 'post-emergence business plan was based on data-driven projections (and extensive discussions with vendors) that Rite Aid's front-end vendors would return to their less restrictive prepetition payment terms' as well as assurances from select capital providers that the company would be provided with the needed letter of credit facilities—all of which the company said 'was crucial to Rite Aid's recovery.'
Yahoo
17-03-2025
- Business
- Yahoo
Forever 21's US operator files for Chapter 11 bankruptcy
Fast fashion brand Forever 21's US operator and licensee F21 OpCo and its domestic subsidiaries have initiated voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. The company aims for an orderly wind-down of its US operations while seeking potential buyers for a going concern transaction or asset sale. The retailer has made a plan support agreement with its secured lenders to facilitate an efficient bankruptcy process. This agreement is structured to expedite the company's passage through bankruptcy. Concurrently with liquidation sales at its stores, F21 OpCo will engage in a court-supervised sale and marketing process for its assets. A motion will also be filed seeking permission for asset auctioning under section 363 of the Bankruptcy Code. A successful sale might allow the company to shift from winding down to maintaining ongoing operations. Forever 21's US-based stores and website will continue operating during this transition. Meanwhile, F21 OpCo has requested "first-day" reliefs from the court, including the use of cash collateral to maintain payroll, benefits anda other operational costs throughout the bankruptcy. F21 OpCo has estimated its assets in the range of $100m to $500m, with liabilities between $1bn to $10bn, as reported by Reuters. F21 OpCo chief financial officer Brad Sell stated: 'Following the conclusion of our strategic review and after careful deliberation, we made the decision to file for chapter 11 to implement a court-supervised marketing process to solicit a going concern transaction, and, in the absence of such an arrangement, an orderly wind down of operations. 'While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis [too small to be significant] exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends. 'As we move through the process, we will work diligently to minimise the impact on our employees, customers, vendors and other stakeholders.' Forever 21's international stores and e-commerce platforms, operated by separate licensees, are not affected by the US bankruptcy filings. Authentic Brands Group retains ownership of the Forever 21 intellectual property and may seek new licensing agreements outside US operations. "Forever 21's US operator files for Chapter 11 bankruptcy" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
CBS News
19-02-2025
- Automotive
- CBS News
Nikola files for bankruptcy protection. Here's what to know about the troubled EV maker.
Troubled electric vehicle maker Nikola has filed for Chapter 11 bankruptcy protection months after saying that it would likely run out of cash early this year. Nikola was a hot startup and rising star on Wall Street before becoming enmeshed in scandal and its founder was convicted in 2022 for misleading investors about the Arizona company's technology. At the trial of founder Trevor Milton, prosecutors say a company video of a prototype truck appearing to be driven down a desert highway was actually a video of a nonfunctioning Nikola that had been rolled down a hill. But the hype around the company was immense. In 2020, Nikola was valued at around $30 billion, exceeding the market capitalization of Ford Motor Co. Nikola filed for protection in the United States Bankruptcy Court for the District of Delaware and said Wednesday that it has also filed a motion seeking approval to pursue an auction and sale of the business. The company has about $47 million in cash on hand. Nikola Corp. plans to to continue limited service and support operations for vehicles on the road, including fueling operations through the end of March, subject to court approval. The company said that it will need to raise more funding to support those types of activities after that time. "Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," CEO Steve Girsky said in a statement. The executive said the company has made efforts in recent months to raise funds and reduce liabilities and preserve cash, but that it hasn't been enough. "The Board has determined that Chapter 11 represents the best possible path forward under the circumstances," Girsky said. In December 2023 founder Trevor Milton was sentenced to four years in prison after being convicted of exaggerating claims about his company's production of zero-emission 18-wheel trucks, leading to sizeable losses for investors. Milton was convicted of fraud charges, portrayed by prosecutors as a con man six years after he had founded the company in a basement in Utah. Prosecutors said Milton falsely claimed to have built its own revolutionary truck that was actually a General Motors product with Nikola's logo stamped onto it. Called as a government witness, Nikola's CEO testified that Milton "was prone to exaggeration" when pitching his venture to investors. Milton resigned in 2020 amid reports of fraud that sent Nikola's stock prices into a tailspin. Investors suffered heavy losses as reports questioned Milton's claims that the company had already produced zero-emission 18-wheel trucks. The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola didn't admit any wrongdoing. Aside from its personal troubles, Nikola has also had to contend with a more perilous environment for EV makers as sales slow. President Donald Trump has promised to eliminate what he incorrectly calls President Joe Biden's "electric vehicle mandate." What that means in practice is that his executive order will revoke a non-binding goal set by Biden to have EVs make up half of new cars sold by 2030. He will also likely seek repeal of a $7,500 tax credit for new EV purchases approved by Congress as part of Biden's landmark 2022 climate law, the Inflation Reduction Act. Shares of Nikola, based in Phoenix, Arizona, tumbled more than 49% before the market opened Wednesday.
Yahoo
19-02-2025
- Automotive
- Yahoo
Troubled electric vehicle maker Nikola files for bankruptcy protection
Troubled electric vehicle maker Nikola has filed for Chapter 11 bankruptcy protection. The company, once a rising star on Wall Street, became enmeshed in scandal and its founder was convicted in 2022 for misleading investors about the company's capabilities. The Arizona company filed for protection in the United States Bankruptcy Court for the District of Delaware and said Wednesday that it has also filed a motion seeking approval to pursue an auction and sale of the business. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Nikola has about $47 million in cash on hand. Nikola Corp. plans to to continue limited service and support operations for vehicles on the road, including fueling operations through the end of March, subject to court approval. The company said that it will need to raise more funding support those types of activities after that time. 'Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,' CEO Steve Girsky said in a statement. The executive said the company has made efforts in recent months to raise funds and reduce liabilities and preserve cash, but that it hasn't been enough. "The Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders,' he explained. Shares tumbled more than 47% before the market opened Wednesday.
