14 firms interested in Altrec
Published 12:00 am Wednesday, February 5, 2014
Fourteen more firms have expressed an interest in the upcoming auction of Altrec Inc., the online retailer of outdoor gear in Redmond that filed in January for bankruptcy protection.
The successful buyer must beat the $3.25 million offered by Great Outdoors Holdco LLC, a subsidiary of firearms maker Remington Inc., by at least $275,000.
The 14 listed in a bankruptcy filing Thursday include investment firms, turnaround and restructuring specialists and rival e-commerce retailers in outdoor clothing and equipment. The deadline for alternative bids is 11 a.m. Feb. 17. U.S. Bankruptcy Judge Randall Dunn of Portland scheduled a hearing Feb. 24 to approve the sale.
Interested parties contacted for this report declined comment on the Altrec sale, and the document contained no other details about the parties’ interests.
“Unfortunately, this is all very confidential, and I cannot comment at this time,” Eoin Comerford, CEO at Moosejaw Mountaineering and Backcountry Travel Inc., a Michigan-based online retailer that operates Moosejaw.com, wrote in an email.
Others interested in the Altrec sale include Zozi.com, a travel and gear retailer; Active Sports; Leftlane Sports; Overstock.com and OpticsPlanet, a Chicago-based retailer of sporting goods and tactical and outdoor gear.
“OpticsPlanet is a leading Internet retailer and is exploring all available strategic opportunities,” said Reed Heiligman, a Chicago attorney representing the firm. He declined further comment.
Hilco Global, described on its website as a firm that buys and sells ailing businesses; Diversis Capital, a Los-Angeles-based private equity firm; Affinity Development Inc. of San Diego, a consulting, marketing and operations firm; and Renovo Capital of Dallas, a turnaround and restructuring firm were also among the group.
OpticsPlanet, Active Sports and Remington in December expressed interest in Altrec, which reached $59 million in sales before foundering in December 2011 after a cyber-attack on its website and a nearly simultaneous report of credit card fraud, according to Altrec bankruptcy filings. The fraud report proved inconclusive, Altrec President Mike Morford stated in court filings, but coupled with the cyber-attack and other factors sent the company into a financial tailspin.
Two years later, in December, its creditors took the company to court in Deschutes County. The court on Dec. 12 appointed Hamstreet & Associates, a Portland firm, to oversee the operation as receiver. The creditors later agreed with Hamstreet that selling the company as a going concern would present the best chance of recovering some portion of Altrec’s debt.
Remington, through Holdco, emerged with a “stalking horse” offer acceptable to Altrec creditors, according to bankruptcy filings.
— Reporter: 541-617-7815,jditzler@bendbulletin.com