Golfsmith Proposes $1 Million Employee Retention Program

Golfsmith has asked the Delaware Bankruptcy Court to approve a $1 million retention program for some of its key employees.  The retention program, it says, is needed to implement its recently approved bankruptcy sale and to complete the wind down of its remaining business. The plan, if approved, will provide retention bonuses so some 127 non-insider employees.

The motion [Docket #483] is available for download here.

 

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Sold! Court Approves Lender’s Credit Bid for The Picture People

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Another retailer comes off the bankruptcy auction block….

Following a hotly contested sale process, yesterday the bankruptcy court entered its order approving The Picture People’s sale to its prepetition lender through a designee, TPP OPCO, Inc.

The sale did not generate cash for creditors but instead was completed through a $12 million credit bid.  (English translation: The lender was allowed to bid for the company by crediting its outstanding debt against the purchase price.)

The company has indicated that the sale will enable it to continue as a going concern, preserving roughly 1,200 jobs for its employees.

The credit bid, meanwhile, remains subject to attack by the Creditors’ Committee on a post-sale basis through December 9, 2016.

The Order Authorizing the Sale of Assets is available for download here, and the entire docket is available on KCC’s website.

Golfsmith’s Sale to Dick’s Approved

47876895_l.jpgIt’s official.  The bankruptcy court has entered its order approving Golfsmith’s sale.  The successful bidder is a joint venture bid submitted by Dick’s Sporting Goods, Inc. and a contractual joint venture of liquidators Hilco Merchant Resources, LLC, Gordon Brother Retail Partners, LLC, and Tiger Capital Group, LLC.

The company has indicated that Dick’s will operate some of Golfsmith’s existing retail locations, employing approximately 500 of its former employees. There is not yet a definitive list of the stores to be acquired in the purchase.  (Rather than accepting an assignment of Golfsmith’s leases on the closing date, Dick’s is acquiring designation rights with respect to certain of those leases. So landlords can expect some haggling over lease terms before the dust settles.)  Avoidance actions will remain behind in Golfsmith’s bankruptcy estate.

The Notice of Selection of Successful Bidder & Backup Bidder [Doc. #404] and the Order Approving Sale of All or Substantially All of Debtor’s Assets [Doc. #457] are available for download here.