Friedman’s Inc., Savannah, said its senior lenders have limited funding to a discretionary basis under the company’s senior credit facility. As a result of this discretionary funding, the company said it “has not been able to satisfy all of its cash requirements.”
Friedman’s said it is currently conducting a review of various strategic alternatives available to the company, “including seeking judicial relief in a Chapter 11 reorganization.”
Earlier this month Friedman’s announced that it was not meeting various covenants under its credit facility. Friedman’s continues to be in discussions with its senior lenders regarding its funding needs and amendments to the credit facility.