Two groups of liquidation firms have submitted bids to handle the going-out-of-business sale at Fortunoff, the bankrupt luxury jewelry and furniture retail chain, according to media reports.
Hilco Consumer Capital and Gordon Brothers Group submitted their bid late Sunday night in advance of an auction to begin Monday afternoon, The New York Times reports. One key feature of the joint bid is that the two firms are asking to be allowed to honor Fortunoff gift cards through March 8, if their offer is accepted on Monday, the newspaper reports.
Meanwhile, Great American Group, Hudson Capital Partners, SB Capital Group, and Tiger Capital Group, made a competing offer, Bloomberg News reports. This group also may allow customers to use gift cards, according to one of the people.
The Hilco and Gordon Bros. were designated the “stalking horse” bidders for Uniondale, New York-based Fortunoff, Bloomberg reports. A stalking horse bidder is designated to provide a minimum purchase price for a debtor’s assets.
Fortunoff filed for bankruptcy Feb. 5. It was the second time the company filed for bankruptcy in about a year’s time. It is currently owned by NRDC Equity Partners, the owner of the Lord & Taylor department store chain.