iMedia Brands gets OK of bid procedures; auction set for Aug. 10

By Sarah Lizee

Olympia, Wash., Aug. 3 – iMedia Brands, Inc. received approval of bid procedures for its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company was previously seeking approval to sell its assets privately to RNN-TV Licensing Co. LLC for $27.45 million in cash, plus interest and fees; a minimum cash shortfall; a credit of $7.5 million plus interest, fees and expenses owed to the buyer in its capacity as a lender under the DIP facility; and assumed liabilities.

However, iMedia said its marketing efforts have been successful and the debtors now have an opportunity to drive higher and better value through a competitive auction process.

“One or more well-capitalized bidders have made clear their readiness, willingness, and ability to proceed quickly to a sale on terms higher and better than those provided by the initial sale transaction,” the company said in the motion.

The company had initially set out a timeline with a bid deadline of 9 a.m. ET on Aug. 3, an auction on Aug. 4, and a sale hearing on Aug. 8.

Wednesday’s order pushed back the timeline, with the bid deadline set for 9 a.m. ET on Aug. 9, the auction scheduled for Aug. 10, and the sale hearing set for Aug. 14.

RNN-TV will not be serving as stalking horse bidder for the assets.

iMedia Brands is an interactive media company based in Eden Prairie, Minn. The company filed bankruptcy on June 28 under Chapter 11 case number 23-10852.

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