Sequential Brands gets court OK of stalking horse for With You assets

By Sarah Lizee

Olympia, Wash., Oct. 13 – Sequential Brands Group, Inc. received court approval of a stalking horse agreement under which Jessica Simpson’s With You, Inc. has agreed to purchase all of Sequential Brands’ 62.5% membership interests in With You LLC for a cash purchase price of $65 million, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

With You LLC holds the intellectual property assets and licenses used in the Jessica Simpson consumer Brand business.

Sale process

As previously reported, the company received approval from the bankruptcy court of the bid procedures for substantially all of its assets.

Galaxy Universal LLC, a subsidiary of Gainline Galaxy Holdings LLC, and Centric Brands, Inc. are serving as stalking horse bidders for some of the assets, as previously reported. Specifically, Galaxy will serve as stalking horse bidder for the company’s Active division assets and Centric will serve as stalking horse bidder for the Joe’s Jeans brand.

The company’s existing term B lenders may also credit bid for the debtors’ remaining brands via a credit bid of their pre-petition loans.

The company has until Oct. 18 to choose additional stalking horse bidders. The bid deadline is 4 p.m. ET on Oct. 25, an auction is scheduled for Oct. 28, and a sale hearing is set for Nov. 4.

New York-based Sequential Brands owns, manages and licenses consumer brands across multiple industries. The company filed bankruptcy on Aug. 31 under Chapter 11 case number 21-11194.

© 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.