Classic Party Rentals in Final Stages of Completing Sale Agreement That Provides Strong Foundation for the Future
To Facilitate Agreement, Classic Voluntarily Files for Relief under Chapter 11
$20 Million in DIP Financing; Company to Operate Business as Usual
LOS ANGELES--(BUSINESS WIRE)--Classic Party Rentals (“Classic”), the nation’s leading event rental and services provider, today announced that it is in the final stages of completing an agreement through which substantially all of the Company’s business of Event Rentals, Inc. and its subsidiaries, d/b/a Classic Party Rentals, would be acquired.
“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.”
“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,” said Jeff Black, Classic Party Rental’s President and Chief Executive Officer. “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.
“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.”
To facilitate the expected sale transaction, Classic today filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code. The Company fully expects to operate its overall business as usual and uphold its commitments to stakeholders during the chapter 11 process:
- 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.
- Sales support and customer service will remain at the exemplary levels that the Company’s clients have experienced in the past.
- 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.
Classic has a commitment for $20 million in debtor-in-possession (“DIP”) financing, which the Company anticipates to be more than sufficient funding during the process to complete the expected sale transaction process. This financing, in addition to Classic’s existing resources, will ensure Classic is able to continue meeting all of its financial obligations while the Company is in chapter 11.
As part of the planned sale transaction through chapter 11, the expected agreement will be subject to a court-supervised process that will solicit additional offers for Classic to ensure the Company achieves the highest and best offer for its business. Classic will evaluate any competing offers it may receive, and any competing offer accepted would only improve upon the current expected agreement.
The expected transaction will be subject to the approval of the Bankruptcy Court and the satisfaction of customary closing conditions. Upon completion, Classic expects to be financially and operationally stronger – with more extensive product and service capabilities and outstanding customer service.
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. The Company also has established a vendor and customer support center, which may be reached at 877-759-8814 (toll-free), 424-236-7261 (outside of the U.S. or Canada).
Classic Party Rentals is advised in this transaction by Jefferies LLC, FTI Consulting, and White & Case LLP.
About Classic Party Rentals
Classic Party Rentals is the nation’s largest full-service event rental company with over 30 locations nationwide. The company services most major markets including Los Angeles, Chicago, Dallas, New York and Miami by providing china, glassware, flatware, specialty linen, lounge furniture, lighting, heating, flooring and kitchen and catering equipment. Classic is also the leading nationwide provider of tents and clearspan structures under the brand, Classic Tents as well as providing multi-location services within the brand Classic Event Solutions. In addition to providing event rentals, Classic offers sales support and product and event management for more than 150,000 events per year including major sporting events, brand promotion, corporate events, celebrity weddings, charity events and private social events. For more information, please visit www.ClassicPartyRentals.com.