Altrec Inc., the online retailer of outdoor clothing and gear, would remain in Redmond if bought out of bankruptcy by a subsidiary of Remington Outdoor Co., a court-appointed company overseer said Thursday.

“That’s the plan,” said Clyde Hamstreet, of Portland.

Altrec received bankruptcy court approval Wednesday to remain in business pending its sale. U.S. Bankruptcy Judge Randall Dunn signed off on requests from Altrec to pay its employees, taxes, utilities and other expenses. He also approved Altrec’s acceptance of $1 million in credit from Remington . The legal moves gave the struggling company, which filed Monday for bankruptcy protection from its creditors, time to prepare for a sale.

“The company cannot survive throughout the process needed here, six to eight weeks, without an infusion of additional cash, and Remington has agreed to provide that money,” said Altrec attorney David Foraker of Portland.

Hamstreet’s firm, Hamstreet & Associates, was appointed by a state court in Bend in December to oversee the company at its creditors’ request. Altrec owes its largest creditors more than $11 million total, according to bankruptcy filings. But it remains viable if it can turn itself around, Hamstreet said.

Hamstreet & Associates has supervisory authority of Altrec, but its executives, including company President and CEO Mike Morford, are running the show.

“The company’s got a lot of intangible value, along with its tangible assets,” Hamstreet said. “It’s worth more than if you sold the pieces off by themselves.”

The company has a good understanding of e-commerce, a collection of knowledgeable employees and good customer relations, Hamstreet said. Altrec, founded in 1999, moved to Redmond in 2006. In March 2013, it employed more than 100, some of them temporary. Its bankruptcy filing states that it has 28 current employees.

According to a statement by Morford in the bankruptcy filing, the company’s financial woes started with a cyber attack in December 2011 that blocked its website from online search engines during the critical Christmas buying season. That and other factors precipitated a steep decline in business and creditors pulled the financial plug, according to bankruptcy filings.

The judge also allowed Altrec to continue to fill customer orders, process credit card payments and use about $500,000 cash for the business operation.

The orders “allow the company to continue to operate, I wouldn’t say as usual, but better than it has been able to function in recent months,” Foraker said.

Dunn’s orders Wednesday position Altrec, whose revenues peaked at $59 million in 2011, for sale to Remington, a North Carolina firm better known as one of America’s oldest firearms manufacturers. Remington emerged as a “stalking horse bidder,” one that sets a minimum bid and has certain rights should other bidders emerge.

Foraker declined to reveal the amount Remington offered for the company. Neither Morford nor a spokeswoman for Remington returned calls Thursday seeking comment.

Foraker said a hearing in Portland in the next two weeks will be set for the court to consider the terms of Altrec’s sale. A final hearing is set Jan. 21.

— Reporter: 541-617-7815, jditzler@bendbulletin.com