The U.S. Bankruptcy Court issued an interim order approving Golfsmith International Holdings’ emergency motion for approval of (i) procedures for store closing sales, (ii) assumption of the liquidation consulting agreement and (iii) implementation of an employee bonus program and payments to non-insiders thereunder.
As previously reported, “By this Motion, the Debtors request entry of an order granting them authority, but not directing them, to: (i) begin conducting Store Closing Sales at the Closing Stores immediately upon entry of interim relief; (ii) implement the Store Closing Procedures on entry of interim relief, (iii) assume the Liquidation Consulting Agreement on entry of final relief, (iv) implement a bonus program and fulfill their obligations thereunder to certain non-insiders….Closing the Closing Stores will immediately lower the Debtors’ costs and increase cash flow from operations. Additionally, the liquidation of assets in the Closing Stores is expected to yield approximately $7.2 million in net proceeds.”
Court-filed documents continue, “The Debtors are also seeking authority to assume a liquidation consulting agreement (the ‘Liquidation Consulting Agreement’) with Great American Group, LLC (the ‘Liquidation Consultant’), a liquidation consulting firm that the Debtors have engaged to advise the Debtors on the most effective way to run a seamless and efficient multi-store closing process, and to maximize the value of assets being sold….Consultant shall receive a Merchandise Fee equal to three quarters of one percent (.75%) of the Proceeds which will be determined using the Gross Rings Method. Consultant shall receive an FF&E Fee equal to fifteen percent (15%) of the net proceeds from the sale of the FF&E.”
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