PROVIDENCE – The planned auction of the assets of Alex & Ani LLC ended with no qualified bidders and the sale was canceled, according to documents filed with the U.S. Bankruptcy Court Friday.
The final bid deadline ended Aug. 31.
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The company filed for Chapter 11 bankruptcy in June. Chapter 11 bankruptcy typically involves the reorganization of a business, including debt and assets.
The company went through a restructuring in 2019 following a dispute with banks over an alleged default on a $170 million loan impacting a $100 million credit facility. The lawsuit, which only named one of the seven banks overseeing the loan, Bank of America, was voluntarily dismissed later that year.
The company has been impacted by adverse trends driving customers away from brick-and-mortar retailers. It also saw significant management turnover amid explosive growth, was adversely impacted by the COVID-19 pandemic and suffered a significantly disruptive ransomware attack in early 2020.
The company also filed a motion on Friday seeking to lengthen the period of time it has under federal law to remove potential actions under its Chapter 11 bankruptcy – seeking an extension to Jan. 2, 2020.
In the interim, the company said it has been working on stabilizing its business operations to maximize the value of its estates, and has obtained relief that has enabled it to continue to operate the business “in ordinary course.”
The company is also still formulating and filing a final Chapter 11 plan to present to the court. The company’s original Chapter 11 plan was filed on Aug. 23.
“As a result of the debtors’ focus on other matters associated with their restructuring, the debtors are not yet in a position to undertake a thorough analysis of the actions or develop a strategy with respect to whether they should remove certain actions,” the filing said.
The company said in its filings Friday that its actions under its bankruptcy plan still include the exploration of negotiating a potential sale of all of its assets and obtaining approval of bidding procedures.
The plan is not finalized, and is scheduled to be reviewed by the court on Sept. 22.
