Bakers Footwear selects closing-store, contingency stalking horse bids

By Caroline Salls

Pittsburgh, Oct. 23 - Bakers Footwear Group, Inc. has selected stalking horse bids for its proposed store-closing sale from a joint venture consisting of SB Capital Group, LLC and Tiger Capital Group, LLC, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Missouri.

The joint venture submitted the closing-store stalking horse bid and contingency stalking horse bids selected by Bakers.

The guaranteed amount to be received by Bakers under the closing-store bid will be 33½% of the total retail price of the merchandise included in the sale, and the guaranteed amount under the contingency bid will be 37% of the total retail price of the merchandise to be included in the sale.

The company said it will advise parties that submitted qualified bids whether the auction will be conducted on the basis of the closing-store stalking horse bid or the contingency stalking horse bid by Nov. 3.

According to the filing, the closing-store stalking horse bid includes a break-up fee of $175,000 payable to the joint venture from the proceeds of a higher or otherwise better transaction. The break-up fee is equal to 1.7% of the estimated guaranteed amount to be received by the company from the proposed store-closing sale.

The closing-store stalking horse bid also requires an initial overbid at auction of an increase of 0.5% in the guaranty percentage, plus the amount of the break-up fee.

Bakers said the contingency stalking horse bid includes a break-up fee of $400,000 payable to the joint venture from the proceeds of a higher or otherwise better transaction. That fee is equal to 1.8% of the estimated guaranteed amount to be received under the contingency stalking horse bid.

In addition, the contingency stalking horse bid also requires an initial overbid at auction of an increase of 0.5% in the guaranty percentage, plus the amount of the break-up fee.

The sale hearing is scheduled for Nov. 7. A hearing on approval of the proposed bid procedures has been set for Oct. 31.

Bakers, a St. Louis-based footwear retailer, filed for bankruptcy on Oct. 3. The Chapter 11 case number is 12-49658.

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