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Dairy Mart Convenience Stores Inc. continued its restructuring plan after filing for bankruptcy protection in September by receiving court approval for $46 million in financing that will let it continue paying its employees and vendors.
Dairy Mart, which operates about 550 convenience stores in seven states, said it secured all of the funds, known as a debtor-in-possession (DIP) facility, after initially receiving approval for use of up to $10.75 million.
"We are pleased to have received final approval from the court on the entirety of this funding. And, we are very grateful and appreciative for the support we are receiving from all our stakeholders -- banks, creditors, suppliers and employees,? said Gregory Landry, Dairy Mart?s president and chief executive officer. ?Their support has been crucial to our continued operation over the last few weeks.?
Foothill Capital Corp., a unit of Wells Fargo & Co., led a group of lenders that supplied the funds.
Dairy Mart filed for Chapter 11 bankruptcy protection on Sept. 24. Its stores will continue to operate normally during the process. Landry also noted that same-store sales have increased during September and October.