The home décor retailer has received approval from theUS Bankruptcy Court of Delaware to extend its $70million debtor-in-possession financing on moreadvantageous terms. The extension is with Bank ofAmerica and General Electric Capital Corp., which havealso provided a proposal to Garden Ridge that outlinesexit financing terms that are more favorable than theexisting agreement.

According to CFO Rich Brown, the approval from theCourt and the creditor agreements gives Garden Ridgethe time needed to complete its restructuring process.

Moreover, Garden Ridge has made progress in itsefforts to renegotiate leases for its stores,distribution locations and corporate headquarters.When the Houston-based retailer filed bankruptcy inFebruary 2004, its real estate portfolio totaled morethan seven million sf of leased space including 47stores. To date, Garden Ridge has obtained 30 leaseagreements that have been signed or are awaiting final documentation. About five more leases are still waiting for lease amendments.

In June 2004, the retailer filed a motion with theBankruptcy Court regarding its right to renegotiateunpaid or vacated leases and subleases. At the time,CEO Jack Lewis claimed that the leases "were as muchas double the market rate."

Garden Ridge, a privately held chain, has 35 stores in13 states.