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Bankruptcy trustee seeks sale of 50 Below

October 2, 2012
Filed under News

The court-appointed bankruptcy trustee for 50 Below’s bankruptcy case has filed a motion in U.S. Bankruptcy Court to sell off the company’s assets.

The company could be sold in whole, including trademarks, divisions, contracts and unexpired leases, or it could be sold piecemeal, The Duluth News Tribune reported. The goal, however, is to sell the assets together and to continue to operate the company under new ownership.

A hearing on the bid request is set for Thursday, and a hearing on the sale will be held Nov. 7, with sealed bids due by Oct. 29. 50 Below could be out of Chapter 11 bankruptcy by Nov. 10, Michael McGrath, the attorney who filed the bankruptcy, reported to the newspaper.

50 Below filed for bankruptcy on Aug. 29. The Duluth, Minn.-based website provider, which has 250 employees, claimed liabilities of $12 million to 20 creditors in its filing.

To read the full story from The Duluth News Tribune, click here.

 

Comments

2 Responses to “Bankruptcy trustee seeks sale of 50 Below”

  1. former50 on October 2nd, 2012 11:02 pm

    Dave Hogge and Mike Rollo are finally getting what they deserve. They’ve been playing games for a long time. Hopefully things can get turned around for the sake of the employees, but this story doesn’t look like it’s going to end well. I’m glad I was able to find a good, stable job after my short employment there. It was tough knowing that a delayed paycheck could happen during any pay period and having that dark cloud looming over my head was depressing. I hope others can find success like I did. There were a lot of good, talented people who were taken advantage of at 50 Below.

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  2. William Shakespear on November 3rd, 2012 7:05 am

    Being a former employee and seeing inter-office politics and favoritism at it’s best, you knew that this was inevitable. Who cares about the owners. I think the money they probably stashed away is what got them in this mess to begin with.

    My concern is two fold. 1. It’s with the folks that wake up everyday and show up to work and do their job. 50 Below pays well when they do actually pay (it was usually a week or two after your original pay date – so sometimes you’d get two checks in one pay period too bad you were already a week late on your bills — and no I’m not kidding). I think a lot of good people are going to struggle for awhile. Fortunately, Duluth is well known for it’s call centers and has Health Care and Health Insurance Companies always looking for those who are capable. I really wish those folks the best.

    2. The masses of powersports, tire, pool and spa, and financial dealerships and/or firms that bought into 50 Below’s excuses and BS. Mike and Dave are not people you want to shake hands business wise.

    In closing, I would hope that a company like ARI could win a bid for 50 Below (if possible) and become a powerhouse in the industry as well as possibly keeping jobs in the area. Good Luck to all.

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