Case 14-10867 Doc 3 Filed 04/11/14 Page 1 of 9 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re COLDWATER CREEK INC., 1 In re COLDWATER CREEK U.S. INC., In re ASPENWOOD ADVERTISING, INC., In re COLDWATER CREEK THE SPA INC., Case No. 14 10867 Case No. 14 10868 Case No. 14 10869 Case No. 14 10870 1 The Debtors in these proceedings (including the last four digits of their respective taxpayer identification numbers) are Coldwater Creek Inc. (9266), Coldwater Creek U.S. Inc. (8831), Aspenwood Advertising, Inc. (7427), Coldwater Creek The Spa Inc. (7592), CWC Rewards Inc. (5382), Coldwater Creek Merchandising & Logistics Inc. (3904) and Coldwater Creek Sourcing Inc. (8530). Debtor CWC Sourcing LLC has the following Idaho organizational identification number W38677. The Debtors corporate headquarters is located at One Coldwater Creek Drive, Sandpoint, Idaho 83864. 0115322036.1
Case 14-10867 Doc 3 Filed 04/11/14 Page 2 of 9 In re CWC REWARDS INC., In re COLDWATER CREEK MERCHANDISING & LOGISTICS INC., In re COLDWATER CREEK SOURCING INC., In re CWC SOURCING LLC, Case No. 14 10871 Case No. 14 10872 Case No. 14 10873 Case No. 14 10874 0115322036.1 2
Case 14-10867 Doc 3 Filed 04/11/14 Page 3 of 9 DEBTORS MOTION FOR AN ORDER AUTHORIZING JOINT ADMINISTRATION OF RELATED CHAPTER 11 CASES Coldwater Creek Inc. ( CWC ), on behalf of itself and its affiliated debtors and debtors in possession in the above-captioned cases (collectively, the Debtors ), hereby submits this motion (this Motion ) for entry of an order authorizing the joint administration of the Debtors eight chapter 11 cases and the consolidation thereof for procedural purposes only. In support of this Motion, the Debtors respectfully state as follows Background 1. On the date hereof (the Petition Date ), each of the Debtors filed a voluntary petition with the Court for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. 101 et seq. (the Bankruptcy Code ). The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107 and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed in these chapter 11 cases. As of the date hereof, no creditors committee has been appointed. 2. The Debtors and their non-debtor affiliate (collectively, Coldwater ) have operated as a specialty retailer of women s apparel, jewelry and accessories. Coldwater has been a multi-channel retailer that offers its merchandise through retail stores across the country, its catalog and its e-commerce website, www.coldwatercreek.com. Originally founded in Sandpoint, Idaho in 1984 as a direct, catalog-based marketer, Coldwater evolved into a multichannel specialty retailer operating 334 premium retail stores, 31 factory outlet stores and seven day spa locations throughout the United States. As of the Petition Date, the Debtors employ 339 full and part-time employees in their corporate headquarters and 5,571 full and part-time employees in other locations, including their retail stores, spas, design center, call center and distribution center. 0115322036.1 3
Case 14-10867 Doc 3 Filed 04/11/14 Page 4 of 9 3. The Debtors have filed these chapter 11 cases because they have concluded that they are unable to reorganize on a stand-alone basis. After months of declining sales and failed out-of-court sales and refinancing processes, the Debtors have determined that the best way to maximize value for the benefit of all interested parties is a prompt and orderly wind-down of their business. As more fully discussed in the Declaration of James A. Bell in Support of Voluntary Petitions, First Day Motions and Applications (the First Day Declaration ), which was filed contemporaneously with this Motion, the conclusion to liquidate was reached following a lengthy process in which the Debtors considered and explored all reasonable strategic alternatives. Additional factual background relating to the Debtors business, capital structure and the commencement of these chapter 11 cases is set forth in detail in the First Day Declaration and is incorporated herein by reference. 4. In order to liquidate their business as expeditiously as possible, contemporaneously with the filing of this Motion, the Debtors have filed the Debtors Motion for Orders (I)(A) Authorizing Entry into Agency Agreement, (B) Authorizing Bidding Protections, (C) Authorizing Bidding Procedures and Auction and (D) Scheduling Sale Hearing and Approving Notice Thereof, (II) Authorizing (A) Sale of Assets and (B) Store Closing Sales and (III) Granting Related Relief seeking authority to conduct chain-wide store closing sales and liquidate their inventory. The Debtors believe that commencing store closing sales prior to the Mother s Day weekend, which historically is a peak sales time for the Debtors, will maximize value for the Debtors estates while minimizing the administrative expenses incurred in these chapter 11 cases. 5. Additionally, the Debtors have filed on the date hereof the Debtors Joint Plan of Liquidation of Coldwater Creek Inc. and its Debtor Affiliates Pursuant to of the Bankruptcy Code (the Plan ) and a related Disclosure Statement. The Plan provides for the orderly resolution of the Debtors remaining assets following completion of liquidation of their 0115322036.1 4
Case 14-10867 Doc 3 Filed 04/11/14 Page 5 of 9 inventory through going out of business sales. The Plan is supported by the Debtors prepetition secured lenders. Facts Specific to Relief Requested 6. On the Petition Date, each of the Debtors filed a voluntary petition for relief under the Bankruptcy Code. Most of the motions, applications, hearings and orders that will arise in these chapter 11 cases will affect all of the Debtors jointly. For that reason, the Debtors respectfully submit that their interests, as well as the interests of their creditors and other parties-in-interest, would be best served by the joint administration of these chapter 11 cases for procedural purposes. Jurisdiction 7. The Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334, and the Amended Standing Order of Reference from the United States District Court for the District of Delaware dated as of February 29, 2012. Venue is proper pursuant to 28 U.S.C. 1408 and 1409. This matter is a core proceeding pursuant to 28 U.S.C. 157(b). The statutory predicates for the relief requested herein are section 105(a) of the Bankruptcy Code, Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), and Rules 1015-1 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the Local Rules ). Relief Requested 8. By this Motion, the Debtors seek entry of an order that directs the joint administration of the Debtors chapter 11 cases and the consolidation thereof for procedural purposes only. The Debtors submit that the joint administration of these chapter 11 cases should be maintained under the case number assigned to CWC, and also request that the Clerk of the Court maintain one file and one docket for the eight chapter 11 cases, under that case name and number. In addition, the Debtors seek the Court s direction that separate docket entries be made 0115322036.1 5
Case 14-10867 Doc 3 Filed 04/11/14 Page 6 of 9 on the dockets of each of the Debtors chapter 11 cases (except that of CWC) substantially as follows An order has been entered in this case under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure directing the procedural consolidation and joint administration of the chapter 11 cases of Coldwater Creek Inc. and its debtor affiliates. All further pleadings and other papers shall be filed in, and all further docket entries shall be made in the docket in the chapter 11 case of Coldwater Creek Inc., Case No. 14 10867 ( ) and such docket should be consulted for all matters affecting this chapter 11 case. 9. The Debtors further request that the caption of these chapter 11 cases be modified as follows to reflect their joint administration IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE --- In re COLDWATER CREEK INC., et al., 1 Debtors. --- Case No. 14 10867 (Jointly Administered) 0115322036.1 1 The Debtors in these proceedings (including the last four digits of their respective taxpayer identification numbers) are Coldwater Creek Inc. (9266), Coldwater Creek U.S. Inc. (8831), Aspenwood Advertising, Inc. (7427), Coldwater Creek The Spa Inc. (7592), CWC Rewards Inc. (5382), Coldwater Creek Merchandising & Logistics Inc. (3904) and Coldwater Creek Sourcing Inc. (8530). Debtor CWC Sourcing LLC has the following Idaho organizational identification number W38677. The Debtors corporate headquarters is located at One Coldwater Creek Drive, Sandpoint, Idaho 83864. Basis For Relief 10. Pursuant to Bankruptcy Rule 1015(b), [i]f... two or more petitions are pending in the same court by or against... a debtor and an affiliate, the court may order a joint administration of the estates. Fed. R. Bankr. P. 1015(b). Local Rule 1015-1 further provides for joint administration of chapter 11 cases when the joint administration of two or more cases pending in [the] Court under title 11 is warranted and will ease the administrative burden for the Court and the parties. Del. Bankr. L.R. 1015-1. 6
Case 14-10867 Doc 3 Filed 04/11/14 Page 7 of 9 11. CWC is the direct or indirect parent of the other seven Debtors. The Debtors, therefore, are affiliates within the meaning of section 101(2) of the Bankruptcy Code and, accordingly, under Bankruptcy Rule 1015(b) and Local Rule 1015-1, the Court has the authority to grant the relief requested herein. 12. In addition, section 105(a) of the Bankruptcy Code provides the Court with the power to grant the relief requested herein by the Debtors. 2 13. The Debtors submit that the joint administration of their estates is warranted and would ease the administrative burden on the Court and all parties-in-interest in these chapter 11 cases. The benefits to these chapter 11 cases come with no prejudice to creditors and other parties-in-interest of any of the Debtors, as the relief requested herein is purely procedural and would not impact the substantive rights of any party. 14. The joint administration of these chapter 11 cases also would permit the Clerk of the Court to utilize a single docket for the eight cases and to combine notices to creditors and other parties-in-interest in the Debtors respective chapter 11 cases. As there likely will be numerous motions, applications and other pleadings filed in these chapter 11 cases that will affect all of the eight Debtors, joint administration would reduce significantly the volume of paper that otherwise would be filed with the Clerk of the Court, render the completion of various administrative tasks less costly and minimize the number of unnecessary delays. Joint administration also would permit counsel for all parties-in-interest to include all of the Debtors chapter 11 cases in a single caption for the numerous documents that likely will be filed and served in these chapter 11 cases and would enable parties-in-interest (including the Office of the United States Trustee for the District of Delaware) in each of these chapter 11 cases to stay apprised of all the various matters before the Court. 2 Section 105(a) states that a bankruptcy court may issue any order, process or judgment that is necessary or appropriate to carry out the provisions of [the Bankruptcy Code]. 0115322036.1 7
Case 14-10867 Doc 3 Filed 04/11/14 Page 8 of 9 15. The entry of joint administration orders in multiple related cases such as these is common in this District. See, e.g., In re Furniture Brands Int l, Inc., Case No. 13-12329 (CSS) (Bankr. D. Del. Sept. 9, 2013) [Docket No. 69]; In re Overseas Shipholding Grp., Inc., Case No. 12-20000 (PJW) (Bankr. D. Del. Nov. 15, 2012) [Docket No. 38]; In re Satélites Mexicanos, S.A. de C.V., No. 11-11035 (CSS) (Bankr. D. Del. Apr. 11, 2011) [Docket No. 67]; In re CB Holding Corp., No. 10-13683 (MFW) (Bankr. D. Del. Nov. 18, 2010) [Docket No. 23]; In re Am. Safety Razor Co., LLC, No. 10-12351 (MFW) (Bankr. D. Del. July 30, 2010) [Docket No. 47]; In re NEC Holdings Corp., No. 10-11890 (PJW) (Bankr. D. Del. June 11, 2010) [Docket No. 34]; In re Elec. Components Int l, Inc., No. 10-11054 (KJC) (Bankr. D. Del. Apr. 1, 2010) [Docket No. 32]; In re Haights Cross Commc ns, Inc., No. 10-10062 (BLS) (Bankr. D. Del. Jan. 12, 2010) [Docket No. 28]. Accordingly, based on the foregoing facts and authorities, the Debtors respectfully submit that the relief requested herein should be granted. Notice 16. Notice of this Motion will be provided to (a) the United States Trustee for the District of Delaware; (b) Kirkland & Ellis LLP, as counsel to the prepetition term loan lenders; (c) Riemer & Braunstein LLP, as counsel to Wells Fargo Bank, National Association; and (d) the 30 largest unsecured creditors of the Debtors, on a consolidated basis. As this Motion is seeking first-day relief, within two days of the hearing on this Motion, the Debtors will serve copies of this Motion and any order entered in respect of this Motion as required by Local Rule 9013-1(m). The Debtors respectfully submit that, in light of the nature of the relief requested, no other or further notice need be given. 0115322036.1 8
Case 14-10867 Doc 3 Filed 04/11/14 Page 9 of 9 WHEREFORE, the Debtors respectfully request that the Court enter an order, substantially in the form attached hereto as Exhibit A, granting the relief requested in the Motion and such other and further relief as may be just and proper. Dated Wilmington, Delaware April 11, 2014 Respectfully submitted, SHEARMAN & STERLING LLP Douglas P. Bartner (Pro Hac Vice Admission Pending) Jill Frizzley (Pro Hac Vice Admission Pending) 599 Lexington Avenue New York, New York 10022 Telephone (212) 848-4000 Facsimile (646) 848-8174 -and- YOUNG CONAWAY STARGATT & TAYLOR, LLP /S/ KENNETH J. ENOS Pauline K. Morgan (No. 3650) Kenneth J. Enos (No. 4544) Rodney Square 1000 North King Street Wilmington, Delaware 19801 Telephone (302) 571-6600 Facsimile (302) 571-1253 Proposed Counsel to the Debtors and Debtors in Possession 0115322036.1
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 1 of 6 EXHIBIT A Proposed Order 0115322036.1 NYDOCS03/977541.9A
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 2 of 6 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re COLDWATER CREEK INC., 1 In re COLDWATER CREEK U.S. INC., In re ASPENWOOD ADVERTISING, INC., In re COLDWATER CREEK THE SPA INC., Case No. 14 10867 Case No. 14 10868 Case No. 14 10869 Case No. 14 10870 1 The Debtors in these proceedings (including the last four digits of their respective taxpayer identification numbers) are Coldwater Creek Inc. (9266), Coldwater Creek U.S. Inc. (8831), Aspenwood Advertising, Inc. (7427), Coldwater Creek The Spa Inc. (7592), CWC Rewards Inc. (5382), Coldwater Creek Merchandising & Logistics Inc. (3904) and Coldwater Creek Sourcing Inc. (8530). Debtor CWC Sourcing LLC has the following Idaho organizational identification number W38677. The Debtors corporate headquarters is located at One Coldwater Creek Drive, Sandpoint, Idaho 83864. 0115322036.1 NYDOCS03/977541.9A
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 3 of 6 In re CWC REWARDS INC., In re COLDWATER CREEK MERCHANDISING & LOGISTICS INC., In re COLDWATER CREEK SOURCING INC., In re CWC SOURCING LLC, Case No. 14 10871 Case No. 14 10872 Case No. 14 10873 Case No. 14 10874 Ref. Docket No. 0115322036.1 2
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 4 of 6 ORDER AUTHORIZING JOINT ADMINISTRATION OF RELATED CHAPTER 11 CASES Upon the motion (the Motion ) of Coldwater Creek Inc. ( CWC ), on behalf of itself and its affiliated debtors and debtors in possession in the above-captioned cases (collectively, the Debtors ), for an order authorizing the joint administration of the Debtors eight chapter 11 cases and the consolidation thereof for procedural purposes only (this Order ); and upon the Declaration of James A. Bell in Support of Voluntary Petitions, First Day Motions and Applications; and it appearing that this Court has jurisdiction to consider the Motion pursuant to 28 U.S.C. 157 and 1334 and the Amended Standing Order of Reference from the United States District Court for the District of Delaware dated as of February 29, 2012; and it appearing that venue of these chapter 11 cases and the Motion in this District is proper pursuant to 28 U.S.C. 1408 and 1409; and it appearing that this matter is a core proceeding pursuant to 28 U.S.C. 157(b); and this Court having determined that the relief requested in the Motion is in the best interests of the Debtors, their estates, their creditors and other parties-in-interest; and it appearing that proper and adequate notice of the Motion has been given and that, except as otherwise ordered herein, no other or further notice is necessary; and after due deliberation thereon; and good and sufficient cause appearing therefor; IT IS HEREBY ORDERED THAT 1. The Motion is GRANTED as set forth herein. 2. Pursuant to section 105(a) of title 11 of the United States Code, 11 U.S.C. 101 et seq., Rule 1015(b) of the Federal Rules of Bankruptcy Procedure and Rule 1015-1 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware, the Debtors chapter 11 cases shall be jointly administered and consolidated for procedural purposes only. 0115322036.1 3
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 5 of 6 3. The Clerk of this Court shall maintain one file and one docket for all of the Debtors chapter 11 cases, which shall be the file and docket for the chapter 11 case of Debtor Coldwater Creek Inc., Case No. 14 10867. 4. All pleadings filed in these chapter 11 cases shall bear a consolidated caption in the following form IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE --- In re COLDWATER CREEK INC., et al., 1 Debtors. --- Case No. 14 10867 (Jointly Administered) 1 The Debtors in these proceedings (including the last four digits of their respective taxpayer identification numbers) are Coldwater Creek Inc. (9266), Coldwater Creek U.S. Inc. (8831), Aspenwood Advertising, Inc. (7427), Coldwater Creek The Spa Inc. (7592), CWC Rewards Inc. (5382), Coldwater Creek Merchandising & Logistics Inc. (3904) and Coldwater Creek Sourcing Inc. (8530). Debtor CWC Sourcing LLC has the following Idaho organizational identification number W38677. The Debtors corporate headquarters is located at One Coldwater Creek Drive, Sandpoint, Idaho 83864. 5. The Clerk of this Court shall make a docket entry in each of the Debtors chapter 11 cases (except that of CWC) substantially as follows Debtors bankruptcy estates. An order has been entered in this case under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure directing the procedural consolidation and joint administration of the chapter 11 cases of Coldwater Creek Inc. and its debtor affiliates. All further pleadings and other papers shall be filed in, and all further docket entries shall be made in the docket in the chapter 11 case of Coldwater Creek Inc., Case No. 14 10867 ( ) and such docket should be consulted for all matters affecting this chapter 11 case. 6. Nothing in this Order shall effect a substantive consolidation of the 0115322036.1 4
Case 14-10867 Doc 3-1 Filed 04/11/14 Page 6 of 6 7. The terms and conditions of this Order shall be immediately effective and enforceable upon its entry. 8. The Debtors are authorized and empowered to take all actions necessary to implement the relief granted in this Order. 9. This Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation of this Order. Dated Wilmington, Delaware April, 2014 UNITED STATES BANKRUPTCY JUDGE 0115322036.1 5