Wet Seal wins approval of $3 million intellectual property asset sale

By Caroline Salls

Pittsburgh, March 3 – Wet Seal, LLC received court approval of the $3 million sale of its intellectual property to Gordon Brothers Brands, LLC, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, WS 2017 LLC was the stalking horse bidder with an original purchase offer of $1.5 million. The stalking horse bidder’s final bid was for $2.95 million.

Since it was not the high bidder, WS 2017 is entitled to payment of a break-up fee of 3% of the purchase price and reimbursement of up to $50,000 of its sale-related expenses.

Wet Seal also received final court approval to hold closing sales at its stores.

Wet Seal entered into an agreement with a contractual joint venture comprised of Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC to conduct the store-closing sales at all of its retail locations.

Under the consultant agreement, the joint venture will receive a fee of 1˝% of the gross proceeds from the closing sales, as well as a fee equal to 20% of the gross proceeds from the sale of any “additional consultant goods.”

Wet Seal, a Foothill Ranch, Calif., clothing retailer, filed bankruptcy on Feb. 2. The Chapter 11 case number is 17-10229.

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