Robbins Brothers Bidder: It’s Us or Nothing

There have been a lot of objections to the proposed “sale” of Robbins Brothers — from lender Paradox Capital, the U.S.trustee, and, most recently, its landlords and the unsecured creditor’s committee.

 

Responding to those objections this week, the debtors argued in court papers that if current (and possibly future) company owner Weston Presidio doesn’t get the company, there is no one to replace them:

 

As explained in the Motions, the only final purchase offers [for Robbins Brothers] were by the Weston Affiliate Purchaser in relation to the Assets, and Spence Diamonds, Inc. (“Spence”) vis-à-vis certain of the Debtor’s Chicago and Houston store related assets (the “Spence AP A Assets”).

 

Among other considerations, pursuant to the Weston Affliate Sale, the purchaser will buy the Assets and operate the applicable stores, under which scenario the Debtor anticipates that many of its current employees will be offered employment, and many of the current customer and vendor relationships will be maintained, by the purchaser.

 

Without the offer from the Weston Affiiate Purchaser, there would be no “going concern” sale process for the Assets to speak of, and the Debtor would in all likelihood be forced to quickly liquidate all of its stores and assets as many large retailer debtors have had to do.

 

While this deal is not a particularly good deal for the trade – or really anyone besides Weston Presidio (and possibly the employees) – it’s certainly not in the trade’s interest to let another retailer fall.  

JCK News Director