DirectBuy asset sale procedures OK’d; auction scheduled for Jan. 18

By Caroline Salls

Pittsburgh, Dec. 1 – DirectBuy Holdings, Inc. received court approval of the bid procedures for the proposed sale of its business assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company entered into a stalking horse agreement with Derby SPV, Inc., an entity formed at the direction of the holders of its pre-bankruptcy notes.

The proposed purchase price is comprised of a $10 million payment, plus cure amounts, all amounts payable under proposal proceedings and the assumption of liabilities.

The assumed liabilities include member purchase orders, accounts payable, specified claims, taxes and employee obligations.

If Derby is not the high bidder, DirectBuy will reimburse up to $300,000 of its sale-related expenses.

Competing bids are due by 5 p.m. ET on Jan. 12.

An auction will be held, if necessary, on Jan. 18, and the sale hearing is scheduled for Jan. 24.

DirectBuy is a Merrillville, Ind.-based members-only showroom and home design center that offers merchandise at manufacturer-direct prices. The company filed bankruptcy on Nov. 1 under Chapter 11 case number 16-12435.

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