Spiegel Inc. received approval on Tuesday to sell the assets of its Spiegel Catalog business to investment firm Pangea Holdings Limited in U.S Bankruptcy Court for the Southern District of New York.
Under the purchase agreement, Hamilton, Bermuda-based Pangea, will acquire substantially all the assets of Spiegel Catalog for approximately $31 million, which includes the assumption of certain liabilities. The deal also includes $22 million in inventory commitments.
Downers Grove, Ill.-based Spiegel and its principal subsidiaries filed for Chapter 11 bankruptcy protection in March 2003. On May 11, 2004, the company entered into an agreement with Pangea to acquire its Newport News division for $28.6 million.
“We have all the approval from the court that we need and are working on closing both the Newport News and the Spiegel transactions within the next several days,” said Spiegel spokesperson Debbie Koopman, adding that the company also is seeking potential buyers for its Eddie Bauer Co.
“The Eddie Bauer transaction includes Eddie Bauer and some support operations. After that we will be working on finalizing the plan of reorganization with the bankruptcy court and settling the estate,” Koopman said.
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