Vann's Files Chapter 11
By Alan Wolf On Aug 6 2012 - 4:58pm
Missoula, Mont. - Vann's has filed for
Chapter 11 bankruptcy protection.
As reported here
last week, the 51-year-old CE/majap chain will continue to operate its five remaining
stores and e-commerce site, CEO Jerry McConnell told TWICE. It closed three
locations over the past year.
The company, led until June by longtime CEO
George Manlove, is also selling off Big Sky Country, an outdoor apparel and
sporting goods e-tail site, and will decide the fate of its mall-based On Store
CE boutique by year's end.
According to documents filed yesterday in a
U.S. bankruptcy court in Butte, Mont., Vann's is seeking the use of cash
collateral and a debtor in possession financing facility, or revolving DIP
loan, of $2 million from its lender First Interstate Bank, here, to keep the
Company revenue this year through Aug. 5
was $45.4 million. It reported revenue of $100.8 million in 2011 and just less
than $93 million in 2010.
Vann's has $17.6 million in assets -- including
$12.5 million in inventory and $1.5 million in vendor rebates and customer
payables -- and $14.4 million in creditor claims, court filings show.
Top secured creditors and their claim
amounts include GE's merchandise financing arm ($4.8 million) and First Interstate
Bank ($4.2 million).
Top unsecured creditors and their claim
amounts include: Klipsch ($600,673); UPS ($221,360); Warrantech ($178,431);
D&H Distributing ($159,466); Onkyo ($137,106); Denon ($133,001); Definitive
Technology ($111,084); and Yamaha ($105,696).
The filing also disclosed several
third-party seller and services agreements with Amazon.com, unilateral price
policy agreements with Panasonic and Samsung, and a MAP policy agreement with
Founded here in 1961 by Pete Vann, the Progressive
Retailer Organization (PRO Group) dealer helped pioneer authorized online CE
sales in the late 1990s and remains the largest independent CE/majap retailer