Hattiesburg, Miss. – Channel Control Merchants, the parent company of Dirt Cheap and Bargain Hunt, has filed for bankruptcy and has already announced some GOB sales on Facebook.
HDC Holdings II LLC and 18 affiliates filed Chapter 11 on Oct. 10 in the Bankruptcy Court in the District of Delaware.
The secondary market retailer operates stores in Louisiana, Mississippi, Alabama, Arkansas, Florida, Texas, Georgia and Tennessee. The company’s stores are stocked with manufacturer and retailer buybacks, closeouts, goods from bankruptcies, overstocks, liquidation merchandise, customer returns and out of season goods.
Its #1 unsecured creditor is Target Corp. Salvage Dept., a division of Target Corp. that handles guest returns, defectives and marked-out-of-stock products. It is owed $15.6 million.
The 2nd largest unsecured creditor is Amazon.com Services, which is owed nearly $5.5 million.
Other retailers among the company’s top 30 unsecured creditors include:
- Macy’s-Bloomingdale’s (#5): just under $500,000
- Nordstrom Inc. (#13): $243,336
- Dick’s Sporting Goods (#15): $208,109
- Lowe’s (#16): $206,123
- 24/7 Shop at Home (#21): $129,877
- Home Depot (#23): $103,967
In early 2022, Channel Control Merchants announced a new investment from major stakeholder KKR and other existing investors. The funding was to be used to build infrastructure and invest in new retail and vendor partnerships. The transaction amount was not disclosed.
See also: