DVS Shoe Co. Inc., which filed for bankruptcy protection in mid-May, has a court date of June 13 to auction off its assets. The minimum bid for the owner of the DVS and Matix action sports footwear brands was set at $4.3 million.
The company filed for bankruptcy protection under a procedure known as Section 363 sale. It allows a “stalking horse” to come forward as a preferred bidder, in this case an unidentified party that made a cash offer of $4 million and fees. DVS, founded in founded the brand in 1995, is owned at a majority by the Dunlap family.
In the filing in California Central Bankruptcy Court, the company blamed
its bankruptcy entry on expensive restructuring in Europe, increased materials and factory costs in China, a heavy debt load and problems with its senior lender, and the overall tough economy. DVS said its revenue have been falling since the recession in 2008 and that it was forced to begin selling off inventory at closeout prices in 2009. DVS had sales of $53.8 million in 2011 and projects sales of $45 million this year, according to its filing.