UPDATE: DVS Sold For $8.55 Million To Sequential Brands Group

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Thu, Jun 21 2012 12:19 pm | Comments

At a court hearing Wednesday, June 20, Sequential Brands Group was deemed the highest bidder and has emerged as the new owner of DVS, after a bidding war with Podium Distribution Acquisition, LLC, a group consisting of La Jolla Group CEO Toby Bost and several others. According to attorneys handling the case, the highest bid came in at $8.55 million from Sequential Brands Group, a licensing company that owns brands such as People’s Liberation. Court documents are expected to be released later this afternoon disclosing additional details.
Here’s the report from the original court hearing on Monday, June 18:

Sequential Brands Group, Inc.‘s $7 million bid for DVS at the June 18 auction was the highest received by the company, which owns William Rast and People’s Liberation. However, a new bidder has emerged who is apparently willing to up the purchase price significantly.

The Official Committee of Unsecured Creditors (the “Committee”) filed a motion yesterday asking to continue the hearing in an effort to increase the sales price and pay off more than just DVS’s secured creditor, Bank of America. According to the filing, “The Committee is further informed that the Prospective Bidder may submit an overbid that will not only provide for a nearly 100% return to senior secured creditor, but will also make provisions for junior secured creditor Clark Codia and the unsecured creditors.”

Sequential filed an objection to the continuation as it undermines the auction process and that it has already begun operations with DVS. The filing refers to an “additional” bidder, however Sequential contends that the bidder was at the auction and could have bid on the company at that time when the sale was announced.

Stay tuned to hear the court’s ruling on the matter.