National Stores Inc.’s Bankruptcy

Pachulski, Stang, Ziehl & Jones, LLP and Katten Muchin Rosenman LLP are serving as legal counsel, SierraConstellation Partners, LLC is serving as the Chief Restructuring Officer and support staff, and Imperial Capital is serving as investment banker to the Company. Choate represented Encina Business Credit, LLC in its capacity as administrative and collateral agent in connection with a $100,000,000 senior secured credit facility entered into as part of a debtor-in-possession financing made to discount retailers National Stores, Inc.

Choate also represented Encina in connection with the workout of National Stores’ prepetition credit facility. National Stores, which operates under the Fallas brand and others, filed for Chapter 11 relief on August 6, 2018.

The company has locations in 22 states and Puerto Rico, and plans to close 74 of its 344 stores as part of a reorganization plan in an effort to survive bankruptcy.

Launched in March 2016, Encina Business Credit, LLC (EBC) is a Chicago-based, independent asset-based lending (ABL) platform targeting middle-market borrowers in the U.S. and Canada that cannot obtain required financing from traditional banks. The firm provides revolving lines of credit and term loans ranging in size from $5 – $50 million and secured by accounts receivable, inventory, machinery & equipment and real estate.

Choate advised with a team including Kevin J. Simard (Picture), Douglas R. Gooding, Rick Thide and Saige E. Jutras.

Involved fees earner: Kevin Simard – Choate; Douglas Gooding – Choate; Rick Thide – Choate; Saige Jutras – Choate;

Law Firms: Choate;

Clients: Encina Business Credit, LLC;

Author: Ambrogio Visconti