The U.S. Bankruptcy Court issued an order approving Golfsmith International Holdings’ motion for entry of an order (i) approving bidding procedures for the sale of substantially all of the Debtors’ assets, scheduling an auction for and hearing to approve the sale of the Debtors’ assets and (ii) approving the sale of substantially all of the Debtors’ assets free and clear of liens, claims, interests and encumbrances.
The order states, “Upon consideration of the motion of bidding procedures…the Debtors, Dick’s Sporting Goods, the purchaser and a joint venture consisting of Hilco Merchant Resources, Tiger Capital Group and Gordon Brothers Retail Partners, collectively the JV Agent (to act as the Debtors’ exclusive agent to conduct sales)…and the transaction represented by the Agency Agreement and APA having been determined to be the highest and best offer for the Merchandise, the Owned FF&E and the Acquired Assets, and a hearing having been held on October 5, 2016… it is found and determined that the sale is approved. The Agency Agreement and APA, including the form and total consideration to be realized by the Debtors pursuant to the Agency Agreement and APA, constitute the highest and best offer received by the Debtors for the Merchandise, the Owned FF&E and the Acquired assets, are fair and reasonable and are in the best interests of the Debtors, their estates and their creditors and all other parties in interest.”
As previously reported, “A critical juncture for the Debtors’ business commences in early November: The Debtors will need to both order a significant amount of new inventory for their stores in advance of the end-of-year holiday season, and to start to prepare their stores to execute their holiday season sales strategy. Approving a sale of the Debtors’ assets to a going concern bidder before November will allow the Debtors’ significant cash needs to be funded by a new owner….In consultation with the Consultation Parties, and subject to finalizing documentation, the Debtors designated as the Successful Bidder a joint bid submitted by Dick’s Sporting Goods and a contractual joint venture of Hilco Merchant Resources, Gordon Brothers Retail Partners and Tiger Capital Group (the ‘JV Agent’ and, together with Dick’s, the ‘Purchaser’).”
Read more retail bankruptcy news.