Sur La Table bid procedures approved, auction to be held on Aug. 5

By Caroline Salls

Pittsburgh, July 13 – Sur La Table, Inc. received court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, the company has entered into a stalking horse asset purchase term sheet with affiliates of Fortress Investment Group, which is working in partnership with Story3 Capital Partners. Sur La Table said in the motion that the stalking horse bid is valued at $61.34 million.

Following the sale, the company said it will operate its successful retail stores, in-person and online cooking classes and e-commerce business.

The assets related to the 55 stores being closed are not included in the sale.

If the Fortress affiliates are not ultimately the winning bidder, Sur La Table will pay them a 3% breakup fee and reimburse up to $500,000 of their sale-related expenses.

The initial overbid amount is $500,000.

Competing bids are due by 4 p.m. ET on Aug. 3.

An auction will be held on Aug. 5, if necessary. Bids at auction must be made in minimum increments of $100,000.

The sale hearing is scheduled for Aug. 10.

Sur La Table is a Seattle-based home furnishings retailer. The company filed bankruptcy on July 8 under Chapter 11 case number 20-18368.

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