NEW YORK — Bankrupt Joan & David on Thursday was sold in a court-approved auction for $16.8 million to Maxwell Shoe Co.
As reported, the shoe and ready-to-wear wholesaler and retailer — which filed for Chapter 11 bankruptcy court protection in March — had agreed earlier this month to sell substantially all of its assets to New England Development Leasing for $16 million. That bid had been subject to higher offers in the auction procedure.
Thursday’s purchase includes the Joan & David retail boutiques and outlets, concession arrangements, inventory and international trademarks, according to Robert Pressman, president of Newmark Retail Financial Advisors, adviser to Joan & David.
A Manhattan bankruptcy court approved the sale on Friday, he said.
The privately held Massachusetts-based corporation, which filed under the name joan and david helpern inc., was formed in 1968. Although it attained considerable brand recognition and popularity among consumers, the firm ran into financial difficulties after embarking on an accelerated retail expansion.
Joan & David, with 60 locations throughout the U.S., Europe and Asia, has shrunk to about a $50 million company from $80 million last year.