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Liquidator Buys Bankrupt Joe’s

Published April 14, 2009

WILMINGTON, DE (BRAIN)—A liquidation company has purchased bankrupt Joe’s Outdoors and More and will begin selling the sporting good chain’s assets.

Joe’s, a 30-store Pacific Northwest chain, filed bankruptcy on March 4 leaving about two dozen bicycle companies, among many others, in the lurch. Joe’s owes nearly $400,000 each to Diamondback/Raleigh, Easton Sports and Dakine, and nearly $300,000 to Smith Optics. Others like Seattle Bike Supply and Currie Technologies are owed less than $100,000.

An auction of the company was held on April 7, where three bidders emerged. The highest bid came from a joint venture between Gordon Brothers Retail Partners, LLC and Crystal Capital Fund Managament. That group will pay Joe’s 49.05 percent of the retail value of merchandise, or about $61 million, and will liquidate the chain’s inventory, furniture, fixtures, equipment and leasehold interests, according to court documents filed April 13.

A meeting of the unsecured creditors’ committee, on which a representative from Raleigh America sits, is scheduled for May 14 in Delaware.

—Nicole Formosa

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