In addition to its $16.9 million in secured debt and $3 million in subordinated promissory notes, Bargain Hunt also owes Amazon $29.4 million in trade debt, making it the company’s largest unsecured creditor.
Liquidation or Last-Minute Buyer?
With no “stalking horse” buyer in place for a going-concern sale, Bargain Hunt plans to liquidate its assets through store closures to maximize creditor recovery. However, the company remains open to a sale if a viable buyer emerges, Hubbard stated.
“The debtor believes that in the absence of a stalking horse buyer for a going concern sale, which it does not currently have, an immediate liquidation of its assets through its retail stores is the only way to maximize value,” Hubbard said.
Debt Obligations and Bankruptcy Proceedings
Bargain Hunt’s financial troubles led to defaults under its prepetition credit agreement, prompting its senior lenders to appoint an independent director, who subsequently placed the company into bankruptcy proceedings.
