Wilderness Experience Emerges From Bankruptcy

Wilderness Experience, a Chatsworth-based maker of backpacks and other outdoor equipment, emerged from bankruptcy proceedings after its reorganization plan was approved by the U.S. Bankruptcy Court.

Hit with major losses, Wilderness filed for reorganization under Chapter 11 of the federal bankruptcy laws June 24, 1987. Under Chapter 11, a company is protected from creditors’ lawsuits while it works out a plan to pay its bills.

Wilderness continues to manufacture outdoor goods and operates six retail stores, four in Southern California and two in Utah. The reorganization plan calls for Wilderness to operate six additional stores by the end of the year.

Meanwhile, Wilderness reported a $541,500 loss from operations for the six months ended April 30. But its lenders’ forgiveness of certain debts under the reorganization plan provided the company with one-time gains that gave it a net profit of $1.5 million, or 21 cents a share, in the period, against a loss of $627,600 a year earlier.

Wilderness’ six-month sales fell 52% to $480,100 from $993,000.