Private investors flocking to Tweeter’s aid
Troubled consumer electronics retailer Tweeter Home Entertainment Group Inc., which filed for Chapter 11 bankruptcy protection earlier this month, has received bids from two private investment firms looking to purchase the company’s assets.
On June 11 Tweeter, No. 242 in the Internet Retailer Top 500 Guide, filed for Chapter 11 bankruptcy and announced a restructuring plan. But now the company has received a $38 million bid from Schultze Asset Management LLC, a New York private equity firm that specializes in buying or funding distressed companies, to acquire a majority of its assets. Under the proposal, Schultze would also assume $8 million of additional costs and provide a $10 million line of credit.
Schultze`s bid includes the purchase of Tweeter`s 18.75% interest in Tivoli Audio LLC, a Boston-area audio components manufacturer. Tweeter also has received a separate $10 million bid from Whippoorwill Associates Inc. and Bay Harbour Management to acquire the stake in Tivoli.
All bids will be evaluated at an auction on July 10. Tweeter, which sells online at Tweeter.com and in a network of 153 stores in various New England, Mid-Atlantic, Midwestern and Western states, posted a net loss of $35.2 million on revenue of $163.2 million in the second quarter vs. a net loss of $34.3 million on sales of $186.8 million in the prior year.
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