HACKENSACK, N.J. — The U.S. Bankruptcy Court for the District of New Jersey has set a noon Dec. 5 deadline to bid on the assets of retailer DirectBuy Home Improvement, which does business as Z Gallerie.
The deadline is the latest development in the Chapter 11 bankruptcy, filed on behalf of the retailer on Oct. 16.
Objections to the sale are due before 5 p.m. Dec. 6 and an auction is planned for the morning of Dec. 7. Objections to the successful bidder are due by 5 p.m. Dec. 13.
A court hearing for the sale will take place at 10 a.m. Dec. 15.
The sale includes what the court describes as substantially all assets of the debtor including those assets that are free of all encumbrances such as property tax liens and other liens attached to those assets. According to sources familiar with the process, the assets would primarily include the company’s retail locations and its warehouse facilities.
The sale also would include the assumption and assignment of signed contracts and unexpired leases. According to its Chapter 11 filing on Oct. 16, Z Gallerie had 21 stores in nine states.
Further details on bidding requirements can be found in the bidding procedures document filed with the court on Nov. 9. A legal notice for the bid process is also included toward the bottom of this week’s newsletter.