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Edwin Watts Golf gets OK for $40 million sale to GWNE/Hilco venture
By Jim Witters
Wilmington, Del., Dec. 5 - Edwin Watts Golf Shops, LLC received approval for a $40 million asset sale and going-out-of-business agreement with a joint venture of Hilco Merchant Resources, LLC and GWNE, Inc. during a Dec. 5 hearing in the U.S. Bankruptcy Court for the District of Delaware.
The joint venture emerged as the prevailing bidder during a Dec. 2 auction.
A joint venture comprising Gordon Brothers Retail Partners, LLC and EJ Golf, LLC is the backup bidder, with a bid of $39.7 million.
GWNE plans to operate 40 of the profitable Edwin Watts retail outlets. Hilco will oversee going-out-of-business sales at the remaining locations.
The sale is expected to close on Dec. 6.
Judge Mary F. Walrath also approved an amendment to the debtor-in-possession financing facility to provide liquidity through the closing of the transaction.
Walrath approved the sale after overruling an objection from the U.S. Trustee's Office.
The trustee argued that Hilco was attempting to act as a buyer, while invoking protections under the bankruptcy code provided to agents of the debtors and debtors' professionals.
The judge ruled that Hilco is not a buyer until and unless it exercises its right to take title to the debtors' property.
Hilco's attorneys assured the court that their client will not exercise that right until the end of the going-out-of-business process, when Hilco would take title to any unsold inventory to offer it for sale at wholesale prices.
Edwin Watts Golf, a Fort Walton Beach, Fla.-based specialty golf retailer, filed for bankruptcy on Nov. 4. The Chapter 11 case number is 13-12876.
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