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August 1, 2019 – The Debtors have announced the results of a pair of auctions held on July 31, 2019 in respect of (i) their florist and consumer businesses which have been sold to stalking horse Gateway Mercury Holdings, LLC ("Gateway," an affiliate of Nexus Capital) for $110.9mn and (ii) their Gourmet Foods business (including Shari's Berries) ("Gourmet Foods") which has been sold to SBGF Acquisition, LLC ("SBGF"), an affiliate of 1-800-Flowers.com, Inc., for $20.5mn.
Each of these results will be good news for creditors eyeing the distributable assets pool, with Gateway's purchase price advancing significantly on its opening stalking horse bid of $95.0mn and SBGF comfortably topping the $5.0mn stalking horse mark set by Farids & Co. LLC ("Farids").
These two sales, which will face Court scrutiny at an August 9, 2019 sale hearing, augment the proceeds received in respect of the Debtors' sale of their Personal Creations business (approved by the Court at a July 31st sale hearing) to unchallenged stalking horse PlanetArt LLC ("PlanetArt") for $18.1mn.
The Debtors also announced that (i) Vine Holding Corporation would serve as backup bidder in respect of the florist and consumer businesses (its $113.5mn bid including amounts that would be paid to Gateway pursuant to agreed bidder protections) and (ii) stalking horse Farids (with a bid of $12.5mn in cash subject to price-increasing adjustments…SBGF's offer being just the $20.5mn in cash) would serve as backup bidder in respect of the Gourmet Foods business.
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