A bankruptcy judge rejected a winning bid to sell Family Christian LLC, a retailer of religious books and church supplies, to an investment group led by Atlanta businessman Richard Jackson, the Wall Street Journal reported on Saturday. Bankruptcy Judge John Gregg on Thursday suggested that the Michigan-based retailer’s bankruptcy lawyers hold another auction for the 266-store chain, saying in a 48-page decision the marathon event in May was “nothing short of chaotic.” Family Christian’s bankruptcy lawyers had declared a $46.8 million offer from Jackson, who promised to keep the 3,100-worker chain alive, to be the winner. Two liquidation firms who proposed shutting down the chain — Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC—argued that their offer would provide more money to pay the bankrupt retailer’s debts. In his opinion, Judge Gregg didn't say which bid he thought best. Instead, he rejected all offers after going over a series of mistakes that unfolded during the auction, which began on May 21, recessed several times amid confusion over the bidding process and ended at 2 a.m. on May 27. Read more. (Subscription required.)
Cited in Judge Gregg’s opinion was one of ABI’s newest titles, Credit Bidding in Bankruptcy Sales: A Guide for Lenders, Creditors, and Distressed-Debt Investors. Pick up your copy today.
