Genesis Direct Sells Remaining Business OperationsGenesis Direct Inc., Secaucus, NJ, which filed for bankruptcy protection in August, last week said it has agreed to sell the remainder of its ongoing business operations to GE Investment Private Placement Partners II, a private equity firm that was the highest bidder at a bankruptcy auction last month.
The firm agreed to pay $7.7 million for the assets of ProTeam.com and The Voyager's Collection, $2.6 million for the assets of The Edge Company Catalog and will assume certain liabilities up to $400,000. The transactions are expected to close this month. The sales follow the sale in early December of Genesis's Carol Wright catalog business to Dr. Leonard's Healthcare Corp. for $3.8 million plus royalties.
The proceeds of these sales will be used to repay the company's secured credit facility, to pay for administrative functions associated with the bankruptcy filing and to fund payments to the company's pre-petition creditors. The company said it did not anticipate that any funds would be available for shareholders.