Gordon Brothers Group has acquired principally all of the assets of ArchBrook Laguna Holdings, LLC, a New Jersey-based distributor of consumer electronics including GPS and fitness devices, as well as computers and appliances to retailers. ArchBrook had sales in 2010 of over $800 million and maintained operations in Georgia, Nevada and New Jersey.
ArchBrook Laguna filed for Chapter 11 bankruptcy in New York on July 8 with a plan to sell the business. The largest unsecured creditors are Dell Inc. ($9.8 million), fitness equipment company Direct Entertainment Media Group Inc. ($8.5 million), and GPS maker Garmin Ltd. ($5.7 million).
Among the distributor's primary customers are Wal-Mart Stores Inc., Best Buy Co. Inc., and Costco Wholesale Corp.
The assets acquired by Gordon Brothers Group include ArchBrook Laguna's finished inventory, comprised of consumer electronics, computers and peripherals, as well as a diverse inventory of branded housewares. In addition, the warehouse, material handling machinery and IT assets were also acquired by Gordon Brothers Group.
“We have nearly $20 million at cost of finished inventory that is immediately available for sale to wholesalers and retailers,” said Robert Maroney, Co-President, Commercial & Industrial Division, Gordon Brothers Group. “With back-to-school upon us and the holiday season around the corner, this is the ideal time for this type of merchandise to hit the marketplace.”
Added Robert Himmel, Co-President, Commercial & Industrial Division, Gordon Brothers Group, “By strategically partnering with SED International on the Lehrhoff business, and Steamboat Partners of Chicago, IL on the accounts receivable purchase, we were able to structure a triple win multi-asset deal.”
Inquiries on any assets available for sale should be directed to: Ulos Anderson of Gordon Brothers Group's Commercial & Industrial Division at 615-345-0381.