Century 21’s intellectual property assets are up for sale.
In a statement today, Hilco Streambank announced that it was seeking a buyer for the bankrupt retailer’s IP, including its trademarks, the C21Stores.com domain name, customer data and social media assets. (The advisory firm is handling the bankruptcy sale for the chain.)
“The Century 21 brand provides a trusted destination for name brand apparel, accessories, home goods and more,” said Hilco EVP David Peress. “Century 21’s customers are highly loyal across both the retail and online channel with frequent visits as product assortments are updated daily.”
According to Hilco, Century 21 brought in total gross revenues of more than $747 million in the 2019 fiscal year. Roughly $53 million of those sales were attributed to the company’s e-commerce platform. Offers to acquire the assets are due by Nov. 16, with an auction scheduled for Nov. 19. The sale is subject to the approval of a judge in the United States Bankruptcy Court for the Southern District of New York.
Two months ago, on Sept. 10, Century 21 filed for bankruptcy as well as motions to start going-out-of-business sales at its brick-and-mortar outposts. The company has since been hosting liquidation sales at its 13 stores across New York, New Jersey, Pennsylvania and Florida — aided by cash collateral that provided it with enough funds to continue operations.
According to the 60-year-old retailer, the decision to seek Chapter 11 protection came after its insurance providers failed to pay roughly $175 million under certain policies that were put in place to protect against losses stemming from business interruptions, such as those experienced as a result of the coronavirus pandemic.
According to its bankruptcy filing, Century 21 — with estimated assets and liabilities both in the range of $100 million to $500 million — owed PVH Corp., parent of Calvin Klein and Tommy Hilfiger $4.8 million, while G-III Leather Fashion is unpaid $4.2 million. (No. 1 on the list of creditors with the largest unsecured claims financial holding firm CIT Group, which is owed about $5.9 million.)
Meanwhile, Adidas has a claim of $1.2 million; Michael Kors is due $1 million; Zara is unpaid $908,514; and Hanes Brands is owed $783,855. Other fashion names for which Century 21 has an outstanding tab include Puma at $455,572; Nike at $431,046; and Cole Haan for $423,162.