Hospitality Staffing Solutions Group sale approved
The transaction, which is expected to close by the end of the fourth quarter of 2013, is subject to a competitive bidding process and Court approval. This transition will allow HSS to substantially reduce its outstanding indebtedness, shed certain legacy obligations and emerge with the strong financial backing of a new owner.
HSS will continue uninterrupted service to its customers through the sale process. In addition, HSS does not expect to make any meaningful reductions to its workforce through the sale process. HSS team members will continue to work their usual schedules and be paid in the normal course, pending customary Court approval.
Rick Holliday, president and CEO, said, “This transaction will allow us to clean up our balance sheet and emerge as a stronger company with new owners. Importantly, the process will enable HSS to continue to provide its customers with the same high-quality, industry-leading staffing solutions they’ve come to expect.”
To facilitate the sale, HSS has filed a voluntary petition for relief with the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of the U.S. Bankruptcy Code. To ensure that the Company can continue providing ongoing access to staffing solutions to its customers, and to protect the value of the Company’s assets, HSS will seek to sell its assets under Section 363 of the U.S. Bankruptcy Code, subject to higher and better bids.
HSS also announced that, subject to Court approval, it has secured commitments for debtor-in-possession (DIP) financing from an affiliate of HS Solutions Corporation that will ensure sufficient working capital and enable it to continue operating business as usual throughout the sale process.