September 20, 2016
Curtis Represented Hilco and Gordon Brothers in Connection with Successful Bid to Liquidate Hastings Entertainment Retail Stores
Curtis represented a joint venture comprised of Hilco Merchant Resources and Gordon Brothers Group (the “Joint Venture”) in connection with their successful bid to serve as the Agent for going-out-of-business sales at all 126 Hastings Entertainment retail locations pursuant to the terms of an Agency Agreement.
Founded in 1968, Hastings is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and music. In May 2016, the company initiated a comprehensive process to evaluate potential strategic and financial buyers of the business. As part of that process, on June 13, 2016, Hastings and four affiliates filed voluntary petitions under Chapter 11 of the U.S. bankruptcy code in the District of Delaware before Judge Kevin J. Carey. The Agency Agreement was approved by Judge Carey just 40 days later.
Curtis counseled the Joint Venture as they prepared a stalking horse bid in advance of a Section 363 auction. Their bid was ultimately successful as no superior offers were received in the auction held on July 20. According to the terms of the winning bid, the Joint Venture agreed to pay approximately 75% of the cost of inventory worth at least $110 million. The sale was approved after objections from a trade creditor, Texas state tax authorities, and landlords at certain Hastings big-box retail locations were consensually resolved.
The Curtis team was led by Partner Steven J. Reisman and Counsel Cindi M. Giglio from the Restructuring and Insolvency Department.