W-C Moves to Sell off Assets
Staff Staff -- Furniture Today, September 28, 2009
The bankruptcy court here has set Oct. 15 to consider the sale of W-C Designs' assets.
The company argued in a court filing that auctioning off its assets would yield "substantially more" than a liquidation, which it projects would raise just $200,000.
Court document assert W-C has been seeking buyer since June, but was told by all interested parties they would only acquire the business through a Chapter 11.
Since filing for bankruptcy earlier this month, the company said, 14 prospective buyers have signed confidentially agreements and undertaken due diligence, with 10 parties remaining interested in bidding on the firm.
Assets outlined for sale in court include raw goods, materials inventory, customer lists, open purchase orders, trademarks and certain copyrighted designs as well as furniture, fixtures and other office equipment and supplies. The trademarks include Waterford, Calvin Klein, Casa Cristina, Monique Lhuillier, Royal Daulton and Tabletops Unlimited. Acquisition of the trademarks is subject to approval by each licensor.
W-C told the court that without a rapid asset sale, the company would be forced to liquidate.
The Anaheim, Calif.-based company listed debts of $2.75 million and assets of $450,000. Among W-C's top unsecured creditors is Manhattan Properties, manager of 295 5th Avenue, where W-C has a prominent, street-level showroom. Manhattan Properties is owed just under $270,000. WWRD Holdings Limited, which acquired the Waterford Wedgewood assets out of bankruptcy earlier this year, is owed just over $158,000 in royalties, and Calvin Klein Inc. is owed royalties of more than $143,000.
The bankruptcy was triggered by "the loss of a significant customer" as well as outstanding accounts receivable and the economic downtown, according to the filing.
W-C, founded in 1975, is owned by Ashling Corporation. Waterford Linens holds an 86.5% stake in Ashling and McCullagh a 13.5% stake.
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