Burlington said it filed in U.S. Bankruptcy Court in Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code because of excess of debt in its capital structure. The company, which makes fabrics used in apparel and interior furnishings, reported a loss for the fourth quarter, ended Sept. 29, of $76.7 million, or $1.46 per share, compared with a loss of $523.7 million, or $10.05 per share, in the same period of the prior year.
Burlington said it has received a commitment for up to $190 million in debtor-in-possession financing underwritten by J.P. Morgan Chase. Subject to court approval, the funds will augment the company's liquidity to provide adequate funding for operations during reorganization.
The company said it also has $60 million in cash on hand.
