Rockport cancels auction, will seek court approval of Charlesbank bid

By Caroline Salls

Pittsburgh, July 6 – Rockport Group, LLC cancelled the July 10 auction for substantially all of its assets and will ask the U.S. Bankruptcy Court for the District of Delaware to approve a sale to stalking horse bidder and Charlesbank Equity Fund IX, LP affiliate CB Marathon Opco, LLC, according to a notice filed Friday.

Under the stalking horse bid, Charlesbank agreed to pay $150 million in cash and to issue a warrant to purchase up to 5% of common equity of its indirect parent once the stalking horse bidder receives a return equal to 2.5 times its initial equity investment as of the closing date. Charlesbank will also assume some liabilities related to the assets.

Rockport said it did not receive any qualified competing bids for the assets.

The sale hearing is scheduled for July 16.

Rockport, a West Newton, Mass.-based footwear company, filed bankruptcy on May 14. The Chapter 11 case number is 18-11145.

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