School Specialty looks to lenders to avoid bankruptcy

Posted on Apr 7, 2020 :: General, Insight on Business, Web Exclusive
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Posted by of Insight Publications

Greenville-based School Specialty Inc. may be turned over to its lenders in a move to avoid bankruptcy.

Last November, company leaders announced they were taking a strategic review of the business that included a possible sale. This week, as the provider of school supplies announced its 2019 fiscal financials, School Specialty Executive Vice President and Chief Operating Officer Ryan Bohr said a deal was not reached, so now the company is looking to its lenders and the company “expects (to) arrive at a transaction that will improve our liquidity position and allow our company to continue as a growing concern.”

The transaction will not “provide meaningful value to our shareholders,” he continued.

In 2019, School Specialty’s revenue decreased 7 percent to $626.3 million. Bohr said the company got off to a strong start in 2020, but the COVID-19 pandemic halted its plans for growth. The company has now taken steps to cut costs but remains open as an essential business to provide support to districts, educators and students across the country, he added.

If School Specialty’s lenders take over, the company could avoid filing for bankruptcy. In 2013, School Specialty filed for Chapter 11 bankruptcy reorganization and emerged from it later that year.