"While we entered 2020 with positive momentum from our strong finish in 2019, the dramatic and prolonged impact of Covid-19 on the demand for our products and on our business is truly unprecedented in Libbey's more than 200-year history,” Libbey CEO Mike Bauer said in a statement.
“As a result, entering this process is a necessary step to address our liquidity, strengthen our balance sheet and better position Libbey for the future."
The filing applies only to the company and its U.S. units. Libbey's international units in Canada, China, Mexico, the Netherlands and Portugal aren’t included and are operating normally.
Libbey is in talks with its lenders and other stakeholders regarding the terms of a consensual financial restructuring plan. The company has $160 million in agreed financing from some of its existing lenders. This includes $100 million revolving credit facility and a $60 million term loan.
“Following court approval, the company expects this financing, together with cash flow from operations, to support the business during the court-supervised process,” Libbey said.
It joins storied names such as Neiman Marcus, J.Crew and Hertz that also have turned to bankruptcy.
Many of the bankrupt companies were struggling before the pandemic. Libbey reported revenue of $208.9 million for the fourth quarter, down 1.3% from a year earlier.
Libbey shares closed at 79.57 cents Friday, down 1.78%. The stock has dropped 44% over the last three months.