Zigi USA has emerged as the “stalking horse bidder” for some assets of Bakers Footwear Group, which filed for bankruptcy last month.
According to court documents, Zigi has proposed to pay $2.45 million in cash to purchase the assets, which include the intellectual property (IP), certain executory contracts and nonresidential leases that a trustee for the firm’s estate now holds.
Unless a higher offer emerges, the deal is expected to close before Feb. 28, which is also when Bakers is scheduled to conclude the store-closing sales it is currently holding at its remaining 56 stores.
According to court documents, Peter Edison, Bakers’ former CEO, is now an employee or executive of Zigi. The terms of the purchase agreement allow Zigi to hire any persons currently employed by Bakers.
Footwear News understands that if Zigi’s bid is successful, the company plans to restart the Bakers business, with Edison back at the helm.
Zigi did not respond to a request for comment.
The deadline for submitting bids to beat Zigi’s is next Monday. In the meantime, A&G Realty Partners has been hired to manage the liquidation of the 56 retail stores. An auction for the store leases will also be held next Monday.
Consensus Advisory Services is assisting in the selling of the IP.