Canton, Mass. — Tweeter reported it has received two bids for its assets in connection with the company’s Chapter 11 reorganization efforts.
Schultze Asset Management has made a $38 million “going concern” bid for substantially all of the company’s assets. Schultze would also assume $8 million of Tweeter’s “cure costs” associated with the company’s bankruptcy proceeding, as well as provide the national specialty consumer electronics retailer with a $10 million junior debtor-in-possession line of credit. Tweeter intends to use the $10 million in new funding to purchase merchandise and for other general corporate purposes.
Schultze’s bid includes the purchase of Tweeter’s 18.75 percent interest in Tivoli Audio.
Separately, Whippoorwill Associates and Bay Harbour Management have teamed up to make a $10 million bid for just Tweeter’s Tivoli ownership interest.
The U.S. Bankruptcy Court today approved Schultze’s, Whippoorwill’s and Bay Harbour’s respective bids under a process where other qualified bidders will have the opportunity to submit “higher or otherwise better” offers. An auction will commence on July 10 among Schultze, Whippoorwill, Bay Harbour and any other qualified bidder.
“We are pleased to complete these important steps in our restructuring process as we move forward,” said Tweeter president/CEO Joe McGuire. “Our objective is to bring cash into the company as quickly and responsibly as possible, and today’s events move us closer to that goal.”