Limited committee reveals potential superior bid for company assets

By Caroline Salls

Pittsburgh, Jan. 27 – Limited Stores Co., LLC’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the District of Delaware to deny the proposed bid protections related to the sale of the company’s assets to allow for a potentially superior bid, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Limited has proposed to pay a $772,500 break-up fee and up to $500,000 expense reimbursement to stalking horse bidder Limited IP Acquisition LLC if it is not ultimately the high bidder for the Limited Stores assets.

Limited IP has agreed to pay $25.75 million for the assets.

However, the committee said Sunrise Brands, LLC, which originally submitted an offer that was not superior to the stalking horse bid, has since indicated that it would increase its bid to $26 million and would request no bid protections be paid.

Under the revised bid, Sunrise will not acquire the company’s MGF Sourcing, LLC avoidance actions, the committee said.

“While the committee ascribes no value to the elimination of the avoidance actions, the committee believes the Sunrise bid is not only higher in value, but also superior to the purchaser’s bid in light of Sunrise’s willingness to forego any bid protections, representing significant value for the estates,” the filing said.

A hearing is scheduled for Jan. 30.

Limited Stores is a New Albany, Ohio-based retailer of contemporary upscale branded women’s apparel. The company filed bankruptcy on Jan. 17 under Chapter 11 case number 17-10124.

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