Bluefly, Inc. and Bluefly Holdings, Inc.
- Business was maintained post-assignment through a Transition Management Services Agreement with the stalking horse bidder
- Chancery Court required additional post-assignment marketing before approving the sale
- Process preserved the going concern value of the business which reduced the loss by all classes of creditors
DSI was hired to be the assignee for the benefit of creditors of this “E-Tailer,” selling women’s fashions across a broad spectrum of tastes. The secured creditor supported the assignment process as it had located a buyer for the assets pre-assignment. The Chancery Court required additional marketing of the online platform and inventory before approving the asset sale. Rather than shut the business down, the proposed buyer executed an agreement to run the business as part of its acquisition of the assets. This allowed for the “operations” to remain open to the public, without the assignee having to shut down operations and lose the potential value in the assets.