According to the U.S. Bankruptcy Court docket, Hancock Fabrics filed a motion for order (i) authorizing and approving assumption of a pre-petition consulting agreement with respect to its Crystal Lake Store; (ii) authorizing and approving the store closing sale free and clear of all liens, claims, encumbrances and other interests and (iii) granting related relief.
The motion explains, “This Motion relates solely to a single store – Store No. 1791 in Crystal Lake, Illinois (the ‘Closing Store’) – which was inadvertently excluded from the Debtors’ first day ‘going out of business’ sale motion [D.I. 15] (the ‘GOB Sale Motion’). The lease for the Closing Store is coming to a natural end, and in January, before commencing these cases, Hancock entered into an arrangement with Great American to liquidate that store. The relief sought herein is substantially identical to the relief sought in the GOB Sale Motion. The material terms of the Crystal Lake Agreement…are substantially identical to the consulting agreement assumed in connection with the GOB Sale Motion. The principal difference is that certain fees earned by Great American are incrementally higher under the Crystal Lake Agreement, having been negotiated in connection with a one-off deal…however, it would be inefficient and an unnecessary waste of estate resources for the Debtors to reject the Crystal Lake Agreement and attempt to renegotiate with Great American in respect of the Closing Store when the Crystal Lake Agreement is fair and reasonable, the store closing sale under the Crystal Lake Agreement already commenced prepetition, and it is unclear whether the Debtors could obtain a replacement agreement with Great American or another liquidator expeditiously.”
The Court scheduled an April 21, 2016 hearing on the motion, with objections due by March 28, 2016. Read more bankruptcy news.
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