Destination Maternity cancels auction, will seek OK of $50 million bid

By Caroline Salls

Pittsburgh, Dec. 9 – Destination Maternity Corp. canceled the auction for substantially all of its assets, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As a result, the company said it will ask the court to approve a sale of the assets to stalking horse bidder Marquee Brands, LLC.

As previously reported, Marquee has agreed to pay $50 million for the assets, which include Destination Maternity’s e-commerce business, intellectual property, store-in-store operations and the right to designate the sale of specified inventory and related assets.

The sale hearing is scheduled for Dec. 12.

Destination Maternity is a clothing retailer based in Moorestown, N.J. The company filed bankruptcy on Oct. 21 under Chapter 11 case number 19-12256.

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