Ashley in Hunt for Berkline Assets
Larry Thomas -- Furniture Today, July 19, 2011
WILMINGTON, Del. - Ashley Furniture Inds. has emerged as the stalking horse bidder for the intellectual property of bankrupt upholstery producer Berkline, which ceased operations in late March.
According to documents filed in U.S. Bankruptcy Court here, Ashley would pay $850,000 for the property, which includes the Berkline and BenchCraft trade names as well as patents, trademarks and Internet domain names owned by the company.
Berkline is asking the court to schedule an auction for the intellectual property, using Ashley's offer as the floor for the biddin process. If the property is sold to someone else, Ashley would get a break-up fee of $25,500, plus out-of-pocket expenses in connection with the stalking horse bid.
U.S. Bankruptcy Judge Mary Walrath has set a hearing for July 26 to approve bidding procedures and set a date for the auction.
Berkline has proposed a bid deadline of no later Aug. 5, and wants to hold the auction no later than Aug. 11.
Berkline ceased operations three days before the start of the spring High Point Market after several failed attempts to find a buyer or secure additional financing. The company filed for Chapter 11 bankruptcy protection on May 2.
VIEW ALL GALLERIES
