John Varvatos Enterprises sets procedures for $76 million asset sale

By Caroline Salls

Pittsburgh, May 7 – John Varvatos Enterprises, Inc. requested court approval of the bid procedures for the sale of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company filed bankruptcy to complete a sale of its business as a going concern to an affiliate of existing investor Lion Capital LLP.

Under a stalking horse bid agreement, the Lion affiliate has agreed to purchase substantially all of the company’s assets, as well as some designation rights for unexpired leases for a $76 million credit bid of pre-bankruptcy and post-bankruptcy loan debt.

Under the proposed procedures, competing bids would be due by 5 p.m. ET on June 5 and must exceed the stalking horse bid by at least $250,000.

An auction will be held on June 10, if necessary. Bids at auction must be made in minimum increments of $250,000.

John Varvatos Enterprises is a New York-based menswear retailer. The company filed bankruptcy on May 6 under Chapter 11 case number 20-11043.

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