Rockaway sale hearing July 9
Clint Engel -- Furniture Today, July 2, 2007
Randolph, N.J. — A U.S. Bankruptcy Court hearing set for July 9 will determine whether anyone has topped a standing bid from Sleepy's and Hudson Capital Partners for retailer Rockaway Bedding.
According to court documents, Sleepy's and Hudson bid "up to $12 million" for the assets of Rockaway, including 138 store leases and a warehouse.
That's less than the $15 million to $20 million previously reported, and includes a deal to liquidate about 65 stores, primarily in New Jersey and New York, according to the asset purchase agreement. (An earlier court document on the proposal had pegged 73 stores for going-out-of-business sales.)
The deal calls for Sleepy's and Hudson to receive a $360,000 break-up fee should the chain go to a higher bidder. Additional bids are due by July 2, and an auction would by conducted July 6 if there are other qualified bids. A sale hearing is set for July 9.
William Katchen, an attorney representing Rockaway, confirmed the process but declined to say whether the court had received other qualified bids as of late last week.
Randolph, N.J.-based Rockaway filed for Chapter 11 bankruptcy protection April 9, owing its top nine industry creditors more than $8.4 million and initially saying it would reorganize by culling its weakest stores.
