“We are pleased to have reached this agreement, which will enable us to fully capitalize on our innovative business model, provide significant benefits to our stakeholders and maximize the value of our company,” DirectBuy Chief Executive Officer Mike Bornhorst said.

“Over the past three years, we have taken meaningful steps to strengthen our service platform and improve DirectBuy’s unique value proposition,” he went on to say. “In addition to operational initiatives, we have transitioned our business model to contemporize, customize and simplify the shopping experience for our members as well as to drive value for all our business partners. Today we have announced the next step in our transition, which will enable us to focus entirely on our bright future.”

Nearly 100 showrooms have closed over the last few years as DirectBuy has consolidated operations in Merrillville while rolling out an app, shopping by chat, and other digital initiatives.

DirectBuy employs 400 people in Merrillville. It will continue to pay them salaries and benefits as it goes through bankruptcy proceedings, and is looking to fill about 35 positions at its headquarters and call center. The company says it will continue to pay suppliers and vendors, and says it has a merchandise trust with enough cash to ensure members receive any goods they have already purchased.