Packable is in a late-stage liquidation posture, with the debtors and committee trying to move a March 2026 liquidating plan toward disclosure-statement approval while preserving removal rights and managing remaining claims and adversary-process issues. The case began when Packable filed chapter 11 on August 28, 2022, after its e-commerce business burned substantial cash despite large revenue, lost access to a planned de-SPAC transaction, failed to secure replacement financing, and faced tightening liquidity after ABL lenders exercised cash dominion, leaving about $1.7 million of cash shortly before filing, as described in the Teets first-day declarationDkt. 13.
The restructuring moved quickly away from a going-concern rescue and toward liquidation. Packable entered bankruptcy with a layered prepetition capital structure that included an ABL facility, term loan facility, convertible notes, equipment financing, JV-related obligations, and other debt, and the first-day record framed the chapter 11 strategy around consensual cash-collateral use, asset liquidation, employee-related relief, and minimizing administrative cost rather than preserving the operating platform Teets first-day declarationDkt. 13. The operating story was already one of contraction: after earlier scale across major online marketplaces and brand partners, the debtors had implemented large workforce reductions before the petition date and were using chapter 11 to wind down remaining operations and monetize assets.
The current path is a debtor-and-committee liquidation plan filed in March 2026. The would substantively consolidate the estates, establish a liquidating trust, transfer remaining assets to that trust, and use the trustee to resolve claims, prosecute retained causes of action, and make distributions. The plan fixes the ABL claim at $22.7 million and gives ABL lenders Class A trust interests tied to 50% of net proceeds from remaining non-cash assets, while general unsecured creditors receive Class B trust interests tied to cash plus the other 50% of those proceeds; term loan claims, subordinated claims, and equity interests receive no distribution under the proposed treatment.
Near term, the case is centered on June 25, 2026. The court entered an omnibus-hearing scheduling orderDkt. 2030 for that date, and the debtors then filed a third adjournment notice for the disclosure-statement hearingDkt. 2033 setting the disclosure statement and related solicitation matters for the same 1:00 p.m. hearing. The debtors also seek an eighth extension of the deadline to remove related proceedings, with objections due June 9, 2026 and the requested new removal deadline running to November 23, 2026, under the removal-deadline extension motionDkt. 2032.