Robb & Stucky to liquidate assets through Hudson Capital joint venture

By Lisa Kerner

Charlotte, N.C., March 8 - Robb & Stucky Ltd. LLLP's assets will be liquidated in a deal valued at about $35 million and approved by the U.S. Bankruptcy Court for the Middle District of Florida on Tuesday, according to an attorney familiar with the case.

The company had entered into a stalking horse liquidation agency agreement with the winning bidder, a joint venture comprised of Hudson Capital Partners, LLC and Hyperams, LLC, the attorney said.

As previously reported, the guaranteed amount to be paid to Robb & Stucky under the stalking horse bid would be 75.2% of the total cost value of the merchandise in the liquidating locations.

Sales are expected to begin in mid-March and must end by June 30.

DIP financing approval

Also on Tuesday the court scheduled a further hearing on the Robb & Stucky's debtor-in-possession financing for March 21.

According to the attorney, the court will enter a second interim DIP financing order at the request of the parties to allow for certain discussions to advance.

In February, Robb & Stucky was granted interim access to its $25 million of DIP financing from Bank of America, NA.

Proceeds of the DIP loan will be used to repay pre-bankruptcy debt, for working capital and to pay fees and expenses.

Pricing on the DIP loan is Prime rate plus 325 bps.

The facility will mature on the earliest of April 22, the effective date of a plan of reorganization, the effective date of a sale of the lender's collateral and upon conversion or dismissal of the Chapter 11 case.

Robb & Stucky, a Sarasota, Fla.-based retailer of upscale, high-end furnishings, filed for bankruptcy on Feb. 18. Its Chapter 11 case number is 11-02801.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.