The parent company of Fingerhut, and several other brands, has filed for bankruptcy protection. Bluestem Brands, Inc., as well as all of its subsidiaries and affiliates, filed for Chapter 11 on Sunday with a reported $733 million in liabilities.

The retailer has secured a stalking horse bidder to acquire the company as well as $125 million in debtor-in-possession financing from a series of lenders to allow the company to continue operations under the restructuring process.

Bluestem said it intends to use the reorganization process to implement “a value-maximizing transaction.” The company is looking to deleverage its balance sheet as it looks for long-term success.

The company said it expects to continue servicing its customers through its e-commerce sites and catalogs and does not anticipate any interruption at its call centers and distribution centers as it continues normal business operations.

Bluestem said it is seeking court approval to continue honoring customer credit cards, warranties, and gift cards as well as to pay employee wages and benefits without interruption. The company is also expected to continue to pay for goods and services provided during the Chapter 11 restructuring process.

“Bluestem has been aggressively taking steps to improve both the performance and financial strength of our various businesses and brands,” Bruce Cazenave, CEO of Bluestem, said in a statement. “While these strategies have gained positive momentum, they have not produced enough results yet to satisfy our debt obligations.

“We are using Chapter 11 to maximize the value of our business and have entered into a stalking horse purchase agreement with a syndicate of term-loan lenders, which provides us with a clear path to strengthen our business for continued success.

“The stalking horse bid is a baseline against which we will seek higher or otherwise better outcomes for the benefit of all of our stakeholders. Additionally, Bluestem has a strong foundation as a niche player, providing services and products to underserved consumers. We will emerge from Chapter 11 as a stronger company, with a clear brand focus and the opportunity to realize the full potential of the company,” he added.

Bluestem is a wholly owned subsidiary of Bluestem Group, Inc. (BGRP), which is not a part of the Chapter 11 bankruptcy filing. Bluestem also owns the Appleseed’s, Draper’s & Damon’s, Blair, Gettington, Haband, and Old Pueblo Traders brands.

Shares of Bluestem Group were up 10% as of 10:34 a.m. EDT on Tuesday.

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Packages stand on a conveyor for delivery at the German postal service DHL transit center in Rudersdorf, Germany, Dec. 5, 2018. Michele Tantussi/Getty Images