Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comC&A Marketing Snaps Up Assets of Bankrupt SkyMall
Author: Joel R. Glucksman|April 20, 2015
C&A Marketing Inc. announced on April 1 that it had purchased the physical assets and intellectual property of once-iconic in-flight catalog company SkyMall through a bankruptcy auction.
C&A Marketing Snaps Up Assets of Bankrupt SkyMall
C&A Marketing Inc. announced on April 1 that it had purchased the physical assets and intellectual property of once-iconic in-flight catalog company SkyMall through a bankruptcy auction.
C&A Marketing, a Ridgefield, New Jersey-based company that manufactures and markets a wide range of products, will pay $1.9 million to consummate the sale.
Bankruptcy filing
This follows the Chapter 11 bankruptcy filing of SkyMall LLC and parent company Xhibit Corp., which was announced in January. At the onset of their bankruptcies, the companies sought preliminary relief from the Bankruptcy Court so they could pay specific claims – including those of employees – and allow their business to operate under the jurisdiction of the federal court.
They also requested immediate court approval for a proposed sale process in order to find buyers for the SkyMall online retail business, as well as substantially all other assets.
Bidding process
Almost 200 potential buyers contacted Jeffrey Manning, managing director of CohnReznick Capital Markets Securities, according to The Republican. From that pool of possible acquirers, seven prequalified bidders emerged, with two providing bids during a March 25 auction in Phoenix.
While C&A Marketing bid $1.9 million, FSG Distributors bid $2.5 million, the media outlet reported. In both cases, the bids involved cash and promissory notes. However, C&A won out because its bid had far fewer contingencies than the rival bid, Manning wrote in a decision.
Plans to revitalize
Now that the transaction has been finalized, the New Jersey company has declared that it wants to revitalize SkyMall. The buyer emphasized that, at its zenith, SkyMall catalogs were viewed by almost 30 million air travelers every year. Chaim Pikarski, executive vice president of C&A Marketing, commented on the situation in a statement, noting both the in-flight catalog company’s rise as well as its fall.
“Thanks to the changing times and in-flight Wi-Fi, the once iconic travel-related brand became less relevant and more entertaining. While items like life size yard gorillas are interesting to look at, they’re not usually the kind of impulse or insightful purchase that will resonate with travelers,” stated Pikarski. “Our goal is to bring the SkyMall brand back to its roots, back to the brands, products and technology that relate to all travelers.”
The New Jersey-based marketing and distributing company has helped revitalize several brands, including Ritz Camera & Image and Polaroid.
C&A Marketing Snaps Up Assets of Bankrupt SkyMall
Author: Joel R. Glucksman
C&A Marketing, a Ridgefield, New Jersey-based company that manufactures and markets a wide range of products, will pay $1.9 million to consummate the sale.
Bankruptcy filing
This follows the Chapter 11 bankruptcy filing of SkyMall LLC and parent company Xhibit Corp., which was announced in January. At the onset of their bankruptcies, the companies sought preliminary relief from the Bankruptcy Court so they could pay specific claims – including those of employees – and allow their business to operate under the jurisdiction of the federal court.
They also requested immediate court approval for a proposed sale process in order to find buyers for the SkyMall online retail business, as well as substantially all other assets.
Bidding process
Almost 200 potential buyers contacted Jeffrey Manning, managing director of CohnReznick Capital Markets Securities, according to The Republican. From that pool of possible acquirers, seven prequalified bidders emerged, with two providing bids during a March 25 auction in Phoenix.
While C&A Marketing bid $1.9 million, FSG Distributors bid $2.5 million, the media outlet reported. In both cases, the bids involved cash and promissory notes. However, C&A won out because its bid had far fewer contingencies than the rival bid, Manning wrote in a decision.
Plans to revitalize
Now that the transaction has been finalized, the New Jersey company has declared that it wants to revitalize SkyMall. The buyer emphasized that, at its zenith, SkyMall catalogs were viewed by almost 30 million air travelers every year. Chaim Pikarski, executive vice president of C&A Marketing, commented on the situation in a statement, noting both the in-flight catalog company’s rise as well as its fall.
“Thanks to the changing times and in-flight Wi-Fi, the once iconic travel-related brand became less relevant and more entertaining. While items like life size yard gorillas are interesting to look at, they’re not usually the kind of impulse or insightful purchase that will resonate with travelers,” stated Pikarski. “Our goal is to bring the SkyMall brand back to its roots, back to the brands, products and technology that relate to all travelers.”
The New Jersey-based marketing and distributing company has helped revitalize several brands, including Ritz Camera & Image and Polaroid.
