J & M Sales secures court approval to sell merchandise at 85 stores

By Caroline Salls

Pittsburgh, Oct. 18 – J & M Sales Inc. received court approval to sell some of its assets to Pegasus Trucking, LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

J & M said it determined following an auction held on Oct. 8 that Pegasus submitted the winning bid. Pegasus’s final offer was for 76% of the total cost value for merchandise at 85 of J & M’s closing store locations, $2.5 million in cash, furniture, fixtures and equipment at the 85 locations and the company’s corporate headquarters and lease designation rights.

J & M said it determined that a bid submitted by a contractual joint venture of Hilco Merchant Resources, SB360 Capital Partners and Gordon Brothers Retail Partners, LLC to be the successful bid for the merchandise and furniture, fixtures and equipment at its remaining 184 stores.

Specifically, the company said the joint venture submitted a liquidation bid for 65% of the total cost value for merchandise at those stores and the right to sell for a 15% commission of gross proceeds all furniture, fixtures and equipment at those stores and the company’s distribution centers.

J&M Sales is a Gardena, Calif.-based discount retail company. The company filed bankruptcy on Aug. 6 under Chapter 11 case number 18-11801.

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