Limited Stores bid protections approved; Sunrise given instructions

By Caroline Salls

Pittsburgh, Jan. 30 – Limited Stores Co., LLC received court approval of the bid protections related to the proposed sale of its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company entered into a $25.75 million asset purchase agreement with an affiliate of private equity firm Sycamore Partners to acquire its intellectual property and related assets, subject to the receipt of higher or better offers.

Under Monday’s order, overbids must be for at least $26.5 million, plus a $250,000 overbid amount.

On Friday, Limited’s official committee of unsecured creditors 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.

Monday’s order mandates that Sunrise must demonstrate its financial wherewithal to close the proposed transaction to the satisfaction of Limited, the committee and the company’s debtor-in-possession financing lender before the auction.

Sunrise will also be required to reconfirm its bid of at least $26.5 million before the bid deadline in order to be deemed a qualified bidder, the order said.

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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