HDC Holdings II, LLC, a vertically integrated reverse logistics provider operating the Dirt Cheap, Treasure Hunt, and Dirt Cheap Building Supplies discount retail banners, filed for Chapter 11 protection on October 10, 2024 in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-12307) after losing its key supplier relationship with Target Corporation, which shifted its salvage business to competitor B-Stock, and experiencing a liquidity crisis driven by weekly cash burn of up to $1 million and expiration of its working capital line in July 2024. The company, backed by KKR since 2015, operated 68 facilities across 8 southern states with approximately 765 employees and carried approximately $27.9 million in outstanding ABL debt plus $4 million in second lien debt and $10.5 million in mortgage debt. Store closing sales commenced through Hilco Merchant Resources under final orders entered November 25, 2024. The case was converted to Chapter 7 on December 23, 2024, with George L. Miller appointed interim trustee.
