Anna’s Linens seeks OK of lease assignment stalking horse bidder

By Mark Reccek

Bethlehem, Pa., Aug. 25 – Anna’s Linens, Inc. requested court approval to name FP Stores, Inc. as stalking horse bidder for the proposed $1.4 million assignment of 44 leases, according to a motion filed Monday with the U.S. Bankruptcy Court for the Central District of California.

If FP Stores is not the high bidder, Anna’s will pay it a break-up fee equal to 3% of the purchase price.

“The agreement will provide a minimum bid for the auction and will provide the debtor with a qualified bid that can be consummated if there are no other qualified bidders or such bidders elect not to participate at the auction,” the motion said.

The auction is scheduled for Aug. 27.

As previously reported, the company is selling its intellectual property, including trademarks, copyrights, domain names, customer lists, e-commerce business and related data assets, as well as its lease designation rights and inventory and furniture, fixtures and equipment.

The sale hearing is scheduled for Sept. 9.

The company previously said it anticipates the assets will be sold no later than Sept. 15.

Anna’s Linens, a Costa Mesa, Calif.-based home decor retailer, filed for bankruptcy on June 14. The Chapter 11 case number is 15-13008.

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