Betsey Johnson LLC, the bankrupt women’s fashion retailer, won approval to sell all of its merchandise to a joint venture formed by liquidators Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC.
U.S. Bankruptcy Judge James Peck in Manhattan today approved the deal after lawyers for the company said it was the best one achieved through an auction. Liquidating sales will be able to begin tomorrow.
Hilco and Gordon will pay Betsey Johnson $5.2 million immediately, and 102 percent of the total cost value of the merchandise plus other variables, depending on how successful the sales are, according to court papers.
“It looks as if the auction process was a very successful one,” Peck said.
The case is In re Betsey Johnson LLC, 12-11732, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Tiffany Kary in New York at email@example.com