Blog Cabin

Entries in Vann's bankruptcy (4)

Thursday
Nov012012

Vann's sale back in court for possible approval 

(MISSOULA)- Attorneys working on the proposed sale of Vann’s to a Texas company are scheduled to be in federal court Friday afternoon to see if the deal meets with a judge’s approval. 

The Montana-based appliance and electronics store is working to survive in the face of a federal bankruptcy filed late last summer. At first the case was filed as a Chapter 11 bankruptcy, which would have allowed for reorganization of the company’s millions of dollars in debt while staying in business. However, the proceeding was converted to a Chapter 7 case as debtors press to get the finances worked out before the important holiday sales season, or force liquidation. 

Earlier this week, McMagic Partners stepped into the picture with an offer to buy Vann’s stores and operations across Montana for $4.5-million. Part of the deal would see McMagic offering current Vann’s employees positions with the new company. 

Both parties had until Thursday afternoon to firm up the deal. Now, the court-appointed trustee handling the case is ready to go back into a Missoula courtroom to get approval of the sale to McMagic, and setting up a framework to satisfy outstanding claims. Under terms of that order, the trustee would continue to monitor the sale as the deal goes through. 

That hearing is set for 2 p.m. 

Tuesday
Oct302012

Vann's could have new buyer if court approves

(MISSOULA)- If the U.S. Bankruptcy Court approves, Vann's chain of Montana stories could have a new owner as soon as next Monday. 

Vann's filed for Chapter 11 bankruptcy late last summer, hoping to re-organize its business in face of market pressures that have pushed the chain to the verge of liquidation and closure. The case was converted to a Chapter 7 proceeding last week, satisfying major creditors who've been concerned Vann's has the resources to make it through the critical holiday sales season.

Now, KPAX TV is reporting a Texas company, McMagic Partners LP is offering to buy Vann's operation for $4.5-million. As part of the purchase agreement, Vann's would pay McMagic Partners $250,000 to settle outstanding customer issues and cover merchandise returns. McMagic would offer current employees a job with the new operation. 

The deal has to meet all legal deadlines by Thursday afternoon. 

Wednesday
Oct032012

Vann's gets additional month to work on possible sale

(MISSOULA)- With a court-appointed trustee keeping tabs on things, creditors have agreed to give troubled electronics and appliance retailer Vann's another month to work out a possible sale. 

Vann's is in the middle of a Chapter 11 bankruptcy proceeding, as it struggles to re-bound after being hammered by the recession and changing trends in the retail marketplace. 

The extension came after the parties met for another hearing in U.S. District Court on Tuesday. Creditors, who had been pushing for conversion of the case to a Chapter 7 proceeding with immediate liquidation, agreed to give Vann's additional time to try and work out a possible sale to new owners. The company hasn't identified that investor, but said this week a Bozeman party was interested. 

The court ordered the use of a trustee, who will monitor the company's operations in the coming weeks.

Without the reprieve, Vann's had said it would be forced into liquidation and closing its operations statewide before the holiday shopping season. 

 

Thursday
Sep202012

Vann's to close, layoff employees

KPAX TV photo by Dennis Bragg(MISSOULA)- The CEO of Vann's appliance stores says the continued slide in sales, and an erosion of creditor confidence is what foreced the decision to close the Montana-based store in a few weeks.

Vann's filed for bankruptcy in August, hoping to re-organize its debts in an effort to rebound in the competitive appliance and home electronics business.

But CEO Jerry McConnell tells KPAX TV slumping sales headed into the holiday season undermined the confidence of the company's creditors, and are forcing Vann's to take more immediate action. Yesterday the company sent a letter to employees notifying them of layoffs in November. That impacts about 150-employees at stores in Missoula, Kalispell, Billings, Hamilton and other markets across the state.

McConnell says Vann's is considering its next move to either sell to someone else or liquidate. 

Vann's had filed a Chapter 11 bankruptcy proceeding. But this week GE Commercial, one of the major creditors, asked the court to convert the case to Chapter 7, which would involve liquidation with a court-appointed trustee. In court documents, GE Commercial said it was concerned about the company's negative cash flow headed into the important holiday season. A hearing on that request is set for next week in Missoula.