Destination Maternity seeks OK of bid procedures for asset sale

By Caroline Salls

Pittsburgh, Oct. 29 – Destination Maternity Corp. requested court approval of the bid procedures for the proposed sale of its assets, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The proposed procedures give the company the right to select a stalking horse bidder and to pay bid protections if that bidder is not ultimately the winning bidder for the assets.

Under the company’s proposed timeline, bids would be due by 5 p.m. ET on Dec. 5.

An auction would be held on Dec. 9, if necessary.

The minimum overbid amount would be $500,000.

The sale hearing would be held no later than Dec. 12, and the sale is expected to close by Dec. 31.

Destination Maternity is a clothing retailer based in Moorestown, N.J. The company filed bankruptcy on Oct. 21 under Chapter 11 case number 19-12256.

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