Los Angeles-based Classic Party Rentals, longtime No. 1 on the Special Events list of big party rental companies, today announced that it is in the final stages of completing an agreement through which substantially all of the company’s business and its subsidiaries would be acquired.
The company has for Chapter 11 bankruptcy in Delaware to reorganize its debt.
“We are very close to signing an agreement that will put our financial challenges in the past, substantially reduce our debt and provide a stronger foundation for our future,” Jeff Black, Classic Party Rentals' president and chief executive officer (in photo), said in a statement. “Importantly, we expect to accelerate and increase our investment in the business, our people and our clients, refreshing and growing our inventory and further enhancing the support and innovative solutions we provide for our clients."
Black added, “We believe we have a bright future ahead, with a strengthened company that will create new opportunities for the business. We carefully evaluated opportunities to strengthen Classic’s financial position along with meeting our commitments to our employees, clients, and vendor partners, and we believe completing this agreement will be the best outcome for Classic. Our team is committed to continuing to lead the industry in providing innovative and flawlessly executed event services.”
EVENTS TO GO OFF AS PLANNED According to a company statement, Classic "fully expects to operate its overall business as usual and uphold its commitments to stakeholders during the chapter 11 process." Along that line, "all upcoming and future events that are currently scheduled with Classic will be fulfilled with the same premier customer service that clients have come to expect from the nation’s largest full service event rental company," the company said.
Additionally, sales support and customer service will remain at the "exemplary levels" that the company’s clients have experienced in the past, the company said.
Classic will pay vendor partners in "the ordinary course for goods and services received subsequent to the commencement of the Chapter 11 process and plans to expand its investment into innovative products and services during such period," the company said.
Classic has a commitment for $20 million in debtor-in-possession (“DIP”) financing, which the Classic management "anticipates to be more than sufficient funding during the process to complete the expected sale transaction process."
Classic’s vendors and clients can access additional information about the company's anticipated sale transaction and Chapter 11 filing on its dedicated website, www.ClassicTransaction.com. Classic also has established a vendor and customer support center at 877/759-8814 (inside the U.S.), 424/236-7261 (outside of the U.S. or Canada).