Destination Maternity gets approval of bid procedures for asset sale

By Caroline Salls

Pittsburgh, Nov. 14 – Destination Maternity Corp. received court approval of the bid procedures for the proposed sale of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The 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 approved sale timeline, bids are due by 5 p.m. ET on Dec. 5.

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

The initial minimum overbid amount is $500,000. Subsequent bids must be made in minimum increments of $300,000.

The sale hearing is scheduled for 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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