Missoula, Mont. – Vann’s, the bankrupt CE and majap specialty chain, has been acquired by a conglomerate for $4.5 million.
The buyer, McMagic Partners, a subsidiary of Texas-based Khaledi Group, intends to operate the chain as a going concern under former Panasonic and LG Electronics regional sales exec Greg Regelbrugge, who will serve as CEO, a Vann’s spokesman told TWICE. According to the retailer’s Chapter 7 trustee Richard Samson, Vann’s assets were purchased “free and clear of liens and encumbrances” and McMagic has begun “bringing the management team up to speed.”
The sale successfully concluded on Nov. 6.
According to the local Missoulian newspaper, Khaledi Group controls 38 companies including a CE chain, HK Global Free, which operates in Arizona, California and Texas.
McMagic, a holding company, plans to continue to operate all five remaining Vann’s stores and expand to new markets, the newspaper reported.
Vann’s filed for Chapter 11 bankruptcy protection in August, several weeks after losing a major line of credit. The company said it had gone through several rounds of restructuring in an attempt to save the business, but financial support was deemed insufficient, forcing Vann’s to move into a structured liquidation.
It moved from Chapter 11 reorganization to Chapter 7 liquidation last month to expedite the chain’s sale to a new buyer, former CEO Jerry McConnell said.
The specialty chain, based here, was founded in 1961 by Pete Vann. The company helped pioneer authorized online CE sales in the late 1990s under former CEO George Manlove, and remains the largest independent CE/majap retailer in Montana.