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Quiksilver to sell shoe division to former executives
On behalf of Shulman Bastian Friedman & Bui LLP | Nov 2, 2015 | Mergers & Acquisitions |
In a prior post, we highlighted the Chapter 11 bankruptcy initiated by Quiksilver, the iconic clothing maker that catered to the surfing community. Quiksilver is in the process of developing a plan so that the company can restructure and repay its debts.
According to an ocbj.com report, Quiksilver proposes to sell its Ampla shoe brand to two former Quiksilver executives. Essentially, the two suitors include a former president of Quiksilver's American operations and Quiksilver's chief legal officer. The former president was with the company until February 2015 and the legal officer left the company in 2012.
Despite their former ties to Quiksilver, the purchase proposal is likely to be seen as genuine. After all, the two formed ColEx, a separate company based out of Long Beach. ColEx filed an initial purchase agreement with the bankruptcy court earlier this summer. Meanwhile, a number of other entities, including Rhone Athletic Apparel and Breakaway, put in bids for the company. However, these companies have not shown any other interest. With that, it appears that Colex will remain as the sole potential buyer.
Nevertheless, it would not be surprising if the bankruptcy court found that Quiksilvers sale to ColEx would not confer a specific monetary benefit to Quiksilver. To the contrary, the assets that are transferred will only end up meeting creditor's wishes as they try to liquidate assets that the company could no longer support.
It remains to be seen whether the sale of Quiksilvers former assets will be confirmed. But the story exemplifies the importance of having a skilled attorney to guide you through the process.
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