Shipping firm Pitney Bowes Inc. agreed to liquidate much of its e-commerce business, including its e-commerce logistics unit, in bankruptcy, as part of a pair of deals with Hilco Global and bondholder Oaktree Capital Management.

Under the agreement, affiliates of Hilco agreed to buy a controlling stake in the e-commerce business and then sell it off piecemeal, according to a statement from Pitney Bowes. Oaktree, which holds notes issued by Pitney, as well as secured claims against the e-commerce units, has agreed to support the bankruptcy case, according to court records and regulatory filings.

The e-commerce entities filed for Chapter 11 bankruptcy August 8, listing debts and assets of as much as $500 million each. 

Chapter 11 is typically used by companies to reorganize and keep operating, but can also allow an orderly wind down.

The company’s global e-commerce business lost $136 million in 2023, Pitney said. The deal allows Pitney to streamline its operations, interim chief executive Lance Rosenzweig said in a statement. The company’s SendTech and Presort segments will continue operating as normal, Pitney said.

As part of the e-commerce bankruptcy, Pitney will loan the unit $45 million to pay for the insolvency case, the company said.

The case is DRF Logistics LLC, 24-90447, US Bankruptcy Court, Southern District of Texas (Houston).