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Brookstone – Court Approves Store Closing Sales Agreement and Closing Plan

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August 3, 2018 – The Court hearing the Brookstone case has issued an order (i) authorizing the Debtors to assume the closing store agreement, (ii) authorizing and approving the store closing sales free and clear of all liens, claims and encumbrances, (iii) authorizing the implementation of customary employee bonus program and payments to non-insiders thereunder, (iv) approving dispute resolution procedures and (v) authorizing the Debtors to enter into the store closing plan by and among Gordon Brothers Retail Partners and Hilco Merchant Resources (collectively, the “Liquidation Consultant”) and Brookstone Holdings [Docket No. 75]. As previously reported [Docket No. 25], “Pursuant to the Store Closing Plan, the Debtors, in consultation with Berkeley Research Group (“BRG”) and GLC Advisors & Co. (“GLC”), have determined that it is in the best interest of their estates to immediately prepare for the closure of up to 102 of the Debtors’ underperforming stores plus the Debtors’ liquidation center. The Debtors retained the Liquidation Consultant because of its extensive expertise in conducting store closing sales, including the orderly liquidation of the inventory (the ‘Merchandise’) and certain furniture, fixtures, equipment and other assets that the Debtors do not wish to retain (collectively, the ‘Offered FF&E’ and collectively with the Inventory and any other assets located in a Closing Store, the ‘Store Assets’) at the respective Closing Stores, with an eye toward maximizing revenues and value for the Debtors and their creditors….The Closing Sales shall commence on August 3, 2018 (the Sale Commencement Date) and shall end on September 30, 2018 (the Sale Termination Date)….Debtors shall pay Liquidation Consultant an “Incentive Fee” equal to as one of the following (e.g., back to first dollar): For Aggregate Recovery Percentage (AGP) below 120%, the Incentive Fee (IF) is nil; for AGP between 120% and 129.99%, the IF is 0.50%; for AGO between 130% and 134.99% the IF is 0.75%; for AGP between 135% and 144.99% the IF is 1%; and AGP above 145%, the IF is 1.5%. On a weekly basis, the Debtors shall pay the Liquidation Consultant an amount equal to 0.75% of Gross Proceeds on account of the prior week’s sales as an advance on these fees, and a reconciliation of the Incentive Fee shall be performed as part of the Final Reconciliation. The Liquidation Consultant will also earn the FF&E Commission equal to 15.0% of the gross sales of Offered FF&E, net of sales taxes. The Debtors are entitled to an Additional Goods Fee equal to 7.5% of all non-Debtor goods sold during the Closing Sale at the Closing Stores.”

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The post Brookstone – Court Approves Store Closing Sales Agreement and Closing Plan appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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