As part of these proceedings, Rockport intends to file a motion seeking authorisation for an auction and sale process under Section 363 of the US Bankruptcy Code. If approved by the court, interested parties will be required to submit binding offers to acquire Rockport’s assets.

Joseph Marchese of PKF Clear Thinking has been appointed as the chief restructuring officer of Rockport, bringing considerable experience in managing complex financial and operational restructurings. Meanwhile, Gregg Ribatt has stepped down as the company's CEO but will assist in the transition process, Rockport said in a press release.

Despite these changes at the executive level, many Rockport employees are expected to remain with the company. They will assist Marchese and independent advisors during the Chapter 11 proceedings.

In terms of operations, the company plans to conduct business as usual during the bankruptcy process. Customers can expect no disruption in service or product quality. Subject to court approval, Rockport will operate using debtor-in-possession (DIP) financing, providing the company with adequate liquidity to continue operations throughout the Chapter 11 case and related sale process.

Furthermore, Rockport has entered negotiations with a potential purchaser with substantial industry experience to serve as a stalking horse bidder.

“The immediate relief of Chapter 11 is appropriate to provide the company the opportunity to assess the situation and develop a process to maximise value recoveries for all stakeholders,” said Marchese. “Rockport has valuable assets that can be effectively administered in an organised joint process. I want to assure every employee, customer, creditor, contract party, investor, and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency.”

Fibre2Fashion News Desk (DP)