Foster & Gallagher, Inc., which entered Chapter 11 bankruptcy in July, has received approval of the U.S. Bankruptcy Court for the sale of its assets.
The winning auction bids were filed by the following companies:
*Brecon Capital, which will purchase Foster & Gallagher’s Gift Group for $15 million
*Gardens Alive, which will acquire almost all of the Foster & Gallagher horticultural business for $10.75
These sales include equipment inventory, intellectual property and real estate.
The accepted bids were presented to the court in a hearing on Wednesday. Prior to that, they were examined by company executives in consultation with the firm’s secured lenders and a committee of unsecured creditors.
Foster & Gallagher ceased operations on June 29 as a result of financial and operational problems. For example, response rates for some units plummeted as a result of negative publicity about sweepstakes. In addition, the firm faced a heavy debt load resulting from the purchase of shares for its employee stock ownership program.
