The U.S. Bankruptcy Court issued an interim order approving Bon-Ton Stores’ emergency motion for interim and final orders (a) authorizing the Debtors to assume a store closing agreement; (b) authorizing and approving store closing sales free and clear of all liens, claims and encumbrances; (c) approving dispute resolution procedures; (d) authorizing customary bonuses to employees of closing stores and (e) approving the Debtors’ store closing plan.
As previously reported, “The agreement is between Bon-Ton Stores and a contractual joint venture composed of Hilco Merchant Resources and Gordon Brothers Retail Partners, under which agent shall act as the exclusive agent for the purpose of conducting a sale of certain merchandise at the Merchant’s 39 retail locations and 4 clearance centers. On February 2, 2018, Merchant provided an advance payment of Budgeted Expenses anticipated to be incurred in the first two (2) weeks of the Closing Sales in the aggregate amount of $1,041,000 (the ‘Sale Expense Advance’) which shall be held by the Agent and applied towards Expense Budget items as incurred. Merchant will pay the Agent a Consulting Fee equal to 1.25% of the aggregate Net Proceeds.”
In addition, “Merchant is entitled to an amount equal to 5% of the gross proceeds (excluding sales taxes) from the sale of all Additional Agent Goods. The Closing Sales commenced on February 1, 2018, and will conclude no later than May 31, 2018. The Parties may mutually agree in writing to extend or terminate the Closing Sale at any Closing Store prior to the Sale Termination Date and Merchant may unilaterally establish an earlier Sale Termination Date on or prior to April 30, 2018, upon 5 business days’ written notice thereof to the Agent.”
The Court scheduled a March 7, 2018 final hearing on the store closing sale motion, with objections due by February 28, 2018.
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