Posted: Oct 30, 2012 8:12 PM by MTN News
MISSOULA - It looks like a buyer is stepping forward to buy Vann's' appliance and electronics stores just days before the deadline that was set by a bankruptcy judge expires.
The company could have new ownership by Monday if the bankruptcy judge approves the sale of Vann's, to what court documents describe as a Texas-based company, McMagic Partners, LP, that offered to buy Vann's for $4.5 million.
Vann's filed for bankruptcy in early August because of the steep drop-off in sales, and on October 3rd, the judge approved a Chapter 11 Trustee to oversee Vann's and gave the company a month to find a buyer. Since then, the company worked with more than one potential buyer trying to make a deal.
Last Friday, Vann's case was converted from Chapter 11 to Chapter 7 bankruptcy, allowing the company to speed up the process of the sale. Then on Monday court documents named McMagic Partners as the potential buyer, saying this company will have to meet its legal obligations by 5 p.m on Thursday for the sale to go through.
The purchase agreement states the current employees have to be offered a job by the new owner, before the deal closes. Vann's agreed to pay McMagic Partners $250,000 to address customer disputes, complains and merchandise returns on transaction made before the closed deal.
If the sale is approved by the court, Vann's is expected to "close" the deal with the McMagic Partners by 2 p.m. on Monday.
Vann's employs more than 150 people across Montana with stores in Kalispell, Billings, Bozeman, Missoula and Hamilton, as well as at a warehouse in Lolo.
A federal court hearing is scheduled for this Friday, where attorneys will present the proposed sale to the bankruptcy judge.