Peekay Confirmation Hearing Will Determine Retailer's Destiny

Peekay Confirmation Hearing Will Determine Retailer's Destiny

WILMINGTON, Del. — A bankruptcy judge has approved a Nov. 15 confirmation hearing for Peekay Boutique’s Chapter 11 disclosure and plan, a fast-tracked process that was formed around a $30.7 million sale to senior lenders. 

Peekay, with 46 retail locations as well as its online operations, filed for bankruptcy protection in August, listing more than $72.6 million in debt.

Peekay was forced into bankruptcy after transitioning from a mom-and-pop-owned retailer into a heavily leveraged, investor-owned chain.

According to Albert Altro, Peekay’s recently appointed chief restructuring officer, the Chapter 11 filing for bankruptcy protection capped years of unsuccessful restructuring and sale efforts, including an attempted initial public stock offering and tentative sale agreements.

Under four banners — Lovers, Christals, ConRev and A Touch of Romance — the company operates the bulk of its stores nationwide, particularly in Washington state and Oregon. It also has affiliated ZJ Gifts stores in Texas, Colorado and Oklahoma.

Peekay’s senior lenders agreed to acquire the company as a stalking horse if no other offers arrived. Last week, no other offers were submitted and a planned auction was canceled.

“This was not a loan-to-own scenario by any stretch,” Peekay attorney Adam G. Landis, of Landis Rath & Cobb, told Law360. “They were somewhat of a reluctant buyer. From the company’s perspective, we were very glad to have a floor price with very few barriers to entry.”

Senior lenders, according to a confirmation schedule, would begin voting on the plan immediately with a Nov. 10 deadline, just five days before the confirmation hearing.

Under a settlement announced last month, holders of the Term A senior-most loans agreed to submit a credit bid purchase offer that would cancel $30 million of their current $35.5 million loan claim, according to Law360.

The lenders further agreed to provide an unsecured note up to $200,000, payable over four years, to unsecured creditors, as well as a $100,000, four-year note to the company. The lenders also would assume liability for $400,000 worth of outstanding gift cards.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

XBIZ Retreat Reloads Amsterdam Edition, Set for Sept. 2-5

XBIZ Retreat is making its anticipated return to Amsterdam, set for Sept. 2–5 at the chic Park Centraal Hotel.

Fantasy Gifts NJ Unveils 'Shave Stix' With Product Launch Event

Sexual wellness retailer Fantasy Gifts NJ introduced its new Shave Stix during a special event at its Lumberton location on April 17.

Motorbunny Now Available on 'Throne' Gift Platform

Motorbunny pleasure products are now available on Throne gift platform.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Honey's Place Now Distributing Camtoyz

Honey's Place is now distributing Camtoyz pleasure products.

ToyChats Announces Reviewer Incentives

Recently launched pleasure product review site ToyChats has announced a giveaway program for reviewers.

Paradise Marketing Acquires CondomMan

Paradise Marketing has acquired CondomMan distribution.

RIDMII Debuts New Sex Doll Collection

Pleasure brand RIDMII has introduced a new line of sex dolls.

VVD Debuts Combo Set With 'Vkini,' 'Rider Desire'

Pleasure brand VVD has debuted a new bundle with its Vkini vibrating bikini top and Rider Desire saddle.

B-Vibe Expands 'Butties' Collection, Debuts Harness Sets

B-Vibe has expanded its Butties collection with six new anal plugs and introduced two new harness sets.

Show More