Bluestem Brands cancels auction, looks to sell assets to term lenders

By Caroline Salls

Pittsburgh, June 24 – Bluestem Brands, Inc. cancelled the June 26 auction for its assets and will ask the court to approve a sale to the stalking horse bidder, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, a stalking horse bid was submitted by a syndicate of term loan lenders. The stalking horse bid includes the assumption of liabilities, payment of $200 million by way of an offset against the company’s pre-bankruptcy term loan obligations, cash in an amount necessary to repay a debtor-in-possession facility and cash needed for a wind-down budget.

The company said it did not receive any qualified competing bids before the June 22 bid deadline.

The sale hearing is scheduled for July 6.

Bluestem is an Eden Prairie, Minn.-based online retailer of a broad selection of name brand and private label general merchandise. The company filed bankruptcy on March 9 under Chapter 11 case number 20-10566.

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