DirectBuy Holdings and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-12435. The Company, which operates as a members-only showroom and home design center, is represented by Marion M. Quirk of Cole Schotz.
According to documents filed with the Court, “The purpose of the Chapter 11 Cases is to enable the Debtors to achieve a balance sheet restructuring through a competitive sale of their business assets….While the Debtors’ operations are financially sound, they are insufficient to sustain existing levels of debt or attract a sufficient amount of refinancing.”
Court-filed documents continue, “[T]he Debtors will enter into an Asset Purchase Agreement with Derby SPV, Inc. (‘Buyer’) for the sale of all or substantially all of their business assets…for the sum of $10,000,000 plus Cure Amounts…, plus all amounts payable under Proposal Proceedings, plus…the assumption of assumed liabilities.”
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