Restructuring: Bankrupt Bakers to Sell IP and Leases
The bankrupt footwear retailer has a $2.45 million bid for its intellectual property and leases from Zigi USA
The trustee for bankrupt footwear retailer Bakers Footwear Group Inc.’s wants court permission to sell off more of the company’s assets as part of its liquidation process.
Trustee Robert Blackwell asked Judge Charles Rendlen of the U.S. Bankruptcy Court for the Eastern District of Missouri on Feb. 11 to sell off Bakers intellectual property and leases to stalking-horse bidder Zigi USA LLC for $2.45 million.
Bakers former chief executive Peter Edison is an employee of Zigi, court documents show. If Zigi, also a footwear company, does not win at an auction, it would receive a breakup fee of $73,500. Bids at an auction would need to increase by at least $100,000, according to court documents.
Competing bids are due Feb. 18. An auction is scheduled for Feb. 21. A sale hearing would be held Feb. 25.
Bakers sells private-label and national brand dress, casual and sports shoes, and accessories. The company is currently in the midst of conducting its store closing sales, both in store and online, which it expects to conclude by the end of February.
Bakers, a St. Louis, Mo.-based footwear retailer filed for Chapter 11 bankruptcy protection on Oct. 3, listing $41.9 million in assets and $59.5 million in liabilities.
Bakers filed a motion to convert its case to Chapter 7 liquidation after it concluded that it wouldn’t be able to propose a confirmable reorganization plan, according to court documents.
After the case was converted to a Chapter 7 on Jan. 18, Blackwell was appointed the company’s Chapter 7 trustee.
A&G Realty Partners LLC was retained to handle the liquidation of the company’s remaining stores. Blackwell retained Consensus Advisory Services LLC to sell the intellectual property.
Steven N. Beck and Bryan T. Voss of Blackwell & Associates PC are counsel to Blackwell.
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