A U.S. Bankruptcy Court judge approved a plan to sell Eastern Mountain Sports (EMS) and Bob’s Stores to an affiliate of their current owner so that they can exit Chapter 11 proceedings next month as going concerns.
At a status hearing June 1, Judge Laurie Silverstein entered an order authorizing Vestis Retail Group LLC’s to move forward with a revised asset purchase agreement with BSI Funding II LLC, an affiliate of Vestis’ current parent company Versa Capital Management. By approving BSI Funding’s stalking horse bid, the judge also canceled an auction of Vestis’ assets that had been tentatively scheduled for later this month.
Creditors have until June 15 to file any objections to the revised asset purchase agreement, which calls for BSI Funding to use debts owed Versa toward its purchase of the assets. BSI Fundings bid is valued at just under $100 million according to creditor’s attorneys.
Judge Silverstein has scheduled the next hearing on the sale for June 20.
The asset purchase agreement approved Wednesday had been revised to address objections landlords and other Vestis creditors filed since the company submitted it to the court in its April 18 Chapter 11 petition.
Vestis plans to exit bankruptcy sometime in July with 34 Bob’s Stores and 60 EMS stores still in operation after liquidating all 47 Sport Chalet, eight EMS and one Bob’s stores in bankruptcy court.
