DVS Bankruptcy Proposes Company AuctionTuesday, May 22, 2012
DVS Shoe Co. Inc., which recently relocated its headquarters to Orange County, filed for Chapter 11 bankruptcy protection last week citing declining revenue related to the lingering effects of the economic downturn and credit crunch.
DVS makes shoes, clothes and accessories inspired by skateboarding, snowboarding and motocross under its DVS and Matix brands.
The company moved its operations from Torrance to Westminster in April and employs 27 workers here.
DVS has been shopping for a buyer since 2009. It proposed a June 13 auction date to sell off the assets of the company, according to its bankruptcy filing.
The minimum bid would be set at $4.3 million. The starting price includes a stalking horse bid of $4 million in addition to fees.
DVS President Brian Dunlap declined to provide additional details on the bidder.
DVS’s revenue began to fall in 2008 as the recession set it in. It began selling off inventory in closeout sales starting in 2009. The company also attempted to cut annual operating expenses by $17 million between 2008 and 2011, according to the filing.
DVS had sales of $53.8 million in 2011 and projects sales of $45 million this year, according to court documents.