Gulistan Carpet files for Chapter 11 protection
Hampton Capital Partners, LLC, dba Gulistan Carpet (“Gulistan”), announced that it filed a voluntary petition for Chapter 11 business reorganization in the U.S. Bankruptcy Court for the Middle District of North Carolina. The business reorganization is intended to enable Gulistan to investigate options to sell the business to a third party or to execute an orderly wind down of its operations.
Bank of America has agreed to provide a debtor-in-possession credit facility to the company to enhance liquidity and provide working capital. The credit facility is subject to court approval and other conditions precedent. Gulistan believes that it has sufficient liquidity to operate its business during Chapter 11 and to continue the flow of goods and services to its customers in the ordinary course.
“Chapter 11 gives us the best opportunities to maximize the value of the Gulistan business and its assets,” said Phillip Essig, Chief Executive Officer. “The Board of Directors, the senior management team and I would like to express our appreciation for the hard work and loyalty of our employees. We also want to thank our customers for their continued support and loyalty.”
Gulistan is continuing to produce carpet and ship orders with adequate inventory to service current styles. As the company decides that certain styles will not be part of its product offerings going forward, it will provide notice to customers in a timely manner. Until then, customers can expect the same product quality and service they have come to expect from Gulistan over the years. If customers have any questions, the company asks that they contact its Customer Service Department at 800.729.2727 for assistance. Orders may be placed through the Customer Service Department or online at www.gulistan.com.
“We appreciate the strong customer support of Gulistan over the years and look forward to continuing our relationship with our customers during these difficult times,” added Essig.