Urban Brands seeks court approval of bid procedures for asset sale

By Lisa Kerner

Charlotte, N.C., Sept. 23 - Urban Brands, Inc. asked the court to approve bid procedures for the sale of substantially all of its assets to stalking horse bidder New Ashley Stewart, LLC, an affiliate of GB Merchant Partners, LLC, for $15 million or to the highest bidder, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is requested for Oct. 4.

If New Ashley Stewart is not the highest bidder, Urban Brands will pay a break-up fee equal to 3% of the estimated closing date cost value of the inventory, the filing said.

The debtors have paid New Ashley Stewart an expense reimbursement fee of $150,000.

The minimum opening bid amount must be $15,525,000. Subsequent bids must be $150,000 more than the preceding bid.

Bids would be due Oct. 22 and an auction, if necessary, would be held Oct. 25.

Urban Brands, a Secaucus, N.J.-based plus-sized apparel retailer, filed for bankruptcy on Sept. 21. Its Chapter 11 case number is 10-13005.

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