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Coldwater Creek gets high bid of $161 million during auction of assets
By Kali Hays
New York, May 6 - Coldwater Creek Inc. named a $161 million joint bid by Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC as the winning bid for the sale of substantially all of its assets, according to a Monday notice filed with the U.S. Bankruptcy Court for the District of Delaware.
The back-up bid is a joint venture between Tiger Capital Group, LLC, SB Capital Group, LLC, Great American Group WF, LLC FF&E and CWC Brand Holdings LLC in the amount of $156 million.
As previously reported, the company said it reached an agreement with its lenders on a Chapter 11 plan of liquidation and an agreement with inventory liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources to manage its inventory clearance sales.
Upon filing for bankruptcy, the company expected to begin sales to liquidate its inventory in early May. The company plans to hold going-out-of-business sales in the coming months, with the sales expected to be completed by Aug. 31. No more than 100 stores will be operated by the closing sale agents after July 31.
Under the stalking horse agreement, Coldwater Creek is guaranteed to receive 97% of the cost value of the merchandise included in the sale, which is estimated to be between $90 million and $100 million.
To the extent the store closing sale proceeds exceed the guaranteed amount, the remaining proceeds will be used first to pay an 8.5% agency fee to the stalking horse bidders, then split evenly between the bidders and the company.
Based in Sandpoint, Idaho, Coldwater Creek is a specialty retailer of women's apparel, gifts, jewelry and accessories. The company filed bankruptcy on April 11 under Chapter 11 case number 14-10867.
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