Lenders give Scooter Store breathing room
NEW BRAUNFELS, Texas – The Scooter Store will remain open past its initial deadline of March 31, the company announced today.
“I am encouraged that the company’s lenders are working with us and providing sufficient liquidity to help us navigate a path forward beyond the initial extension of March 31,” stated Larry Young, chief restructuring officer.
There was concern over The Scooter Store’s future after CEO Martin Landon sent a letter last week to the Texas Workforce Commission saying the company had financing only through the end of the month.
“The company has obtained sufficient financing to allow it to avoid the immediate closure of the New Braunfels facility until March 31, 2013, and is optimistic that further efforts will allow the New Braunfels facility to remain operational beyond that date,” Landon wrote.
The Scooter Store is working with a staff of 300 employees while it tries to create a “viable business model,” Young said.
“Our distribution centers are open and serving customers,” he stated. “Serving customer needs remains our top priority.”
The Scooter Store furloughed all but 300 employees on March 8. It plans to officially lay off approximately 1,500 employees as of March 31.