NBG Home: Quoizel Emerges From Sycamore's $413M Home Décor Chapter 11

Nielsen & Bainbridge, LLC and 13 affiliates operating as NBG Home filed chapter 11 on February 8–9, 2023 in the U.S. Bankruptcy Court for the Southern District of Texas (Houston Division), lead case number 23-90071. The Sycamore Partners-backed home décor wholesaler entered the case with approximately $413 million in funded debt, a $60 million DIP facility committed by funds affiliated with KKR Credit Advisors and Silver Point Capital, and a restructuring support agreement that placed the same first and second lien holders in the stalking horse position.

A prepetition marketing process produced no third-party bid, the sale mechanic was abandoned, and the Second Amended Plan divided the business into a reorganized Quoizel, LLC hardwire lighting business and a wind-down of the Affordable Home Décor entities. Confirmation came on June 30, 2023 over a rejecting first lien class, with contested 507(b) and conversion motions by Black Diamond Capital Management resolved at the same hearing. Sycamore's 2017 equity was cancelled.

Debtor(s)	Nielsen & Bainbridge, LLC (14 jointly administered debtors, dba NBG Home)
Court	U.S. Bankruptcy Court, Southern District of Texas (Houston Division)
Case Number	23-90071
Petition Date	February 8–9, 2023
Judge	Hon. David R. Jones (original); reassigned to Hon. Christopher M. Lopez (October 2023)
Confirmation Date	June 30, 2023
Effective Date	July 20, 2023
DIP Facility	$60M ($30M new money + $30M roll-up) from KKR and Silver Point affiliates; 5% PIK commitment fee
Plan Type	Hybrid: reorganization of Quoizel, LLC + wind-down of AHD entities
Plan Administrator	Ocean Ridge Capital Advisors, LLC
Wind-Down Debtor	Dwelling & Decor LLC (23-90070; remains open)

From Sycamore Buyout to Lender-Led Filing

Sycamore Partners acquired the combined business in 2017. The First Day Declaration of CTO Amy Lee describes two operating segments at filing: the Affordable Home Décor (AHD) segment, which supplied national retailers and ran private-label programs, and the Decorative Hardwire Lighting (HWL) segment operated through Quoizel, LLC and DSI Lighting under the Quoizel Lighting brand.

The Debtors employed approximately 730 people at petition, with more than 22% of the workforce covered by a collective bargaining agreement. Austin-area layoffs were among the workforce reductions disclosed during the case.

By late October 2022, the Initial Plan Sponsors — KKR Credit Advisors and Silver Point Capital — had presented a restructuring proposal through PJT Partners.

Tariffs, Freight Costs, and the Wells Fargo Receivables Cutoff

The First Day Declaration attributes the filing to a sequential set of macro shocks rather than a single trigger.

Trade-war tariffs. Beginning in July 2018, the United States imposed tariffs of up to 25% on Chinese goods. NBG Home sourced heavily from China, and the tariffs compressed margins directly. EBITDA fell from $69 million in 2018 to $25 million in 2019, a 64% single-year decline.

Freight cost spike. During the COVID-19 period, average container shipping prices rose from approximately $5,000 in January 2021 to a peak of approximately $19,500 in October 2021. NBG Home later joined a Federal Maritime Commission complaint with Crate & Barrel alleging that ocean carriers including MSC and Evergreen failed to honor service contracts during the pandemic and imposed elevated spot-market rates that contributed to the company's distress.

Pandemic demand disruption. Store closures, labor shortages, and demand volatility produced inventory misalignment in 2020 and 2021 that the Debtors described as compounding the freight pressure.

Loss of the receivables purchase facility. Wells Fargo placed the Debtors' receipts account under cash dominion in August 2022. On January 12, 2023 — less than a month before the petition — Wells Fargo notified the Debtors that it would no longer purchase additional accounts receivable.

Burdensome capital structure. The Debtors entered the distress period carrying over $413 million in funded debt.

Capital Structure and KKR/Silver Point Control

As of the February 8–9, 2023 petition date, the Debtors carried approximately $413.3 million in total funded debt across three prepetition credit facilities, reported externally as roughly $495 million inclusive of accrued interest, fees, and trade obligations.

KKR and Silver Point collectively held more than 50% of the first lien debt and all of the second lien debt. Their dual position as Required Lenders under the prepetition first lien credit agreement and as the committed DIP and exit-financing providers gave them effective control of the case architecture from the outset. Trade payables at petition were approximately $82 million.

DIP Financing and Black Diamond's Superpriority Fight

The Debtors obtained a $60 million DIP facility provided by funds affiliated with KKR and Silver Point, structured as $30 million in new money and a $30 million roll-up of prepetition funded debt with a 5% PIK commitment fee. The original DIP roll-up ratio was 1:1, modified to 3:1 through later amendments. Adequate protection for the prepetition secured lenders took the form of replacement liens and customary protections under the Final DIP Order.

The original DIP milestones required a confirmation order within 50 days of the petition date and an effective date within 60 days. Both targets were missed, requiring forbearance and successive amendments. The Debtors filed at least five DIP amendments through June 2023. The Third DIP Amendment in May 2023 added $1.7 million in new money with $5.1 million in additional roll-up and authorized up to $4.6 million in additional new money on an as-needed basis. The Fourth and Fifth Amendments in mid-June extended milestones to support the contested confirmation schedule.

Black Diamond Capital Management, holding approximately 5.7% of the first lien term loan, opposed the financing. Black Diamond objected at the outset to the DIP structure as improperly stripping value from first lien lenders and proposed an alternative DIP. In response, the Initial Plan Sponsors lowered DIP interest rates, reduced commitment premiums, and increased the investigation budget caps available to creditors challenging the DIP. The Court approved the sponsor-led DIP. The intercreditor dispute over minority-lender rights to participate in DIP financing later drew academic attention, including a Banking & Financial Services article that cited the case in arguing for contractual "Serta-style" DIP-financing protections for minority lenders.

Black Diamond also moved separately for allowance of a superpriority administrative expense claim under section 507(b), arguing that the first lien lenders received inadequate protection during the case. KKR, Silver Point, the Debtors, and the Official Committee of Unsecured Creditors all opposed. The sponsors' objection argued that Black Diamond lacked standing as a minority lender — the credit agreement delegated authority to the Administrative Agent and Required Lenders — that the Required Lenders had waived adequate protection rights by consenting to the priming liens, and that the 507(b) motion was legally meritless. Black Diamond also moved to convert the cases to chapter 7. The bankruptcy court scheduled the 507(b) motion, the conversion motion, and the confirmation hearing for the same day.

Failed Marketing and the Hybrid Quoizel Reorganization

Prior to filing, the Debtors engaged Guggenheim Securities, LLC to run a dual-track marketing and sale process. The Debtors contacted 91 potential purchasers, of which 21 executed nondisclosure agreements and received data-room access. No third-party bid emerged at a level that exceeded the Initial Plan Sponsors' commitment, which was structured to pay DIP claims and ABL claims in full from plan proceeds. With the marketing process exhausted and no competing bid, the Debtors removed the sale mechanic from the plan and pivoted to a hybrid reorganization-and-wind-down structure.

The confirmed plan separated the two operating segments. Quoizel, LLC continued as a going concern under new ownership, with KKR and Silver Point — the DIP lenders and plan sponsors — receiving New Common Stock in Reorganized Quoizel, a portion of the Exit Second Lien Term Loans, a promissory note, and pro rata wind-down proceeds. The Post and Courier reported that Quoizel, headquartered in Goose Creek, South Carolina, emerged as the sole going-concern survivor under KKR and Silver Point ownership. The remaining Debtors — the AHD entities — were placed into an orderly wind-down to liquidate inventory and pay residual operating obligations.

Plan Confirmation, Class Treatment, and Cramdown

The plan classified claims and interests into ten classes:

Class 4 — the first lien term loan lenders — voted to reject the plan at 74.9% by amount and 80% by number, and the Debtors sought cramdown. The confirmation brief argued that the plan was fair and equitable to the rejecting class because higher-priority and lower-priority classes were treated consistently with the priority waterfall. The confirmation order entered on June 30, 2023 approved the plan over Class 4's vote and disposed of Black Diamond's 507(b) and conversion motions in the same hearing. The plan went effective on July 20, 2023, and the Fifth Amended Plan Supplement was filed on July 28, 2023. Law360 reported the confirmation the same day. Sycamore's interests in NBG Topco were cancelled without recovery; the general unsecured class received a fixed $300,000 pool.

The plan included third-party release provisions, with opt-out forms included in both ballots and non-voting status notices. The plan administrator role passed to Ocean Ridge Capital Advisors, LLC.

Post-Effective Wind-Down and Professional Fees

The final decree entered on August 22, 2023 closed 13 of the 14 jointly administered cases. Dwelling & Decor LLC (Case No. 23-90070) remained open as the Wind-Down Debtor and continues to administer claims reconciliation. As of the Q4 2025 post-confirmation status report, $0 had been distributed to claims or interests under the confirmed plan, reflecting the priority waterfall and the time required to liquidate residual AHD assets. The case was reassigned from Judge David R. Jones to Judge Christopher M. Lopez in October 2023 following the post-confirmation transition.

The retained professionals received final fee allowances through the wind-down period:

The order granting Kirkland & Ellis's final fee application entered in October 2023 captured the largest professional allocation of the case.

Key Timeline

Frequently Asked Questions

Who acquired Nielsen & Bainbridge before the chapter 11 filing?

Sycamore Partners acquired the combined Nielsen & Bainbridge business in 2017. Sycamore's equity interests in NBG Topco were cancelled under the confirmed plan without recovery.

What businesses survived the chapter 11?

Quoizel, LLC, the hardwire lighting business headquartered in Goose Creek, South Carolina, continued as a going concern under new ownership by KKR and Silver Point. The Affordable Home Décor business was wound down.

Who provided the DIP financing?

Funds affiliated with KKR Credit Advisors and Silver Point Capital provided a $60 million DIP facility consisting of $30 million in new money and a $30 million roll-up of prepetition funded debt, with a 5% PIK commitment fee. The same lenders served as plan sponsors and received the new equity in Reorganized Quoizel.

Why did the first lien class vote against the plan?

Class 4 first lien term loan holders voted to reject at 74.9% by amount because the recovery delivered to that class was limited to a pro rata share of wind-down proceeds after the DIP and ABL claims were paid. The Debtors sought cramdown, and the plan was confirmed over the rejecting vote on June 30, 2023.

Who is the claims agent for Nielsen & Bainbridge?

Omni Agent Solutions serves as the claims and noticing agent for the jointly administered NBG Home estates. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest. The Wind-Down Debtor, Dwelling & Decor LLC, remains open as claims reconciliation continues.

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