DVS to Sequential Brands for $8.6MFriday, June 22, 2012
A deal for Westminster-based DVS Shoe Company Inc. to be acquired by Sequential Brands Group Inc. is expected to close next week, according to an attorney representing the seller.
DVS will join Pacific Palisades-based Sequential Brands’ portfolio, which inlcudes the William Rast line founded by singer and actor Justin Timberlake, and denim brand Peoples Liberation.
DVS sells clothes, shoes and accessories inspired by skateboarding, snowboarding and motocross under the DVS and Matix brands.
The company filed for Chapter 11 bankruptcy protection in May, and announced an auction to sell its assets. The company set a minimum price of $4.3 million, based on a stalking horse bid plus fees.
Sequential won the auction with a winning bid of $7 million earlier this week. That was successfully challenged when another bidder emerged with a higher price.
The other bidder was Podium Distribution, an entity that included Irvine-based La Jolla Group Inc. Chief Executive Toby Bost, according to Garrick Hollander, a shareholder in Newport Beach-based Winthrop Couchot PC, which represented DVS. Podium Distribution had made the initial bid in the auction.
The entity is unrelated to Podium Distribution, which was the name of the distribution group for DVS and Matix prior to its bankruptcy.
Bost could not be reached for comment.
DVS moved to Westminster in April, following the expiration of its Torrance lease.
The company had sales of $53.8 million last year and projects $45 million this year, according to its bankruptcy filing.