Simply Interior Homes, LLC and six affiliates opened Chapter 11 cases in Delaware on June 8, 2026 and immediately launched a dual-track wind-down: a section 363 sale of substantially all assets paired with an inventory liquidation run by SB360 Capital Partners, with bidding-procedures and sale relief set for hearing on June 23, 2026.
The Debtors are a Rock Hill, South Carolina home textiles and décor business formed in February 2025 through a carve-out from Keeco, LLC, a Centre Lane Partners (CLP) portfolio company. Per the Zalev First Day DeclarationDkt. 11, the carve-out left the company undercapitalized, and distress deepened through lost customer programs, tariff pressure, and a disputed Transition Services Agreement with Live Comfortably, which asserts roughly $5.1 million in unpaid fees. After the prepetition lenders exercised proxy rights in April 2026 to install an independent manager, the Debtors entered a May 2026 forbearance and filed in an over-advance position under the first-lien ABL led by Great Rock Capital Partners Management. Funded debt totals roughly $46.8 million across that revolver, a $13.8 million second-lien sponsor note, and a $15.0 million unsecured sponsor note, alongside approximately $12 million in trade payables.
Postpetition liquidity rests on a $15.0 million DIP and cash-collateral package — $5.0 million of new-money revolver commitments plus up to $10.0 million of roll-up — operating under interim authority entered shortly after the petition, with a final financing hearing scheduled for July 2, 2026. The sale track has drawn early friction: ITS Logistics filed a limited objectionDkt. 100 asserting a warehouseman's lien of at least $1.1 million that it contends must be satisfied before any free-and-clear transfer. A — including a governmental bar date of December 7, 2026 — is noticed for the July 2 hearing, with a further sale hearing scheduled August 6, 2026.
