Online liquidator ReturnBuy files for Chapter 11 bankruptcy
Online liquidator ReturnBuy Inc. last week filed Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Eastern District of Virginia, announcing at the same time it has a letter of intent to be acquired by a $4 billion public company.
Pending court approval, that acquisition should be completed by the end of February, says senior vice president of marketing Steve Kirchner. Under bankruptcy law, other prospective buyers will have the opportunity to bid on the company’s assets before the deal closes.
“It was in the best interests of our company due to its current financial position to file Chapter 11,” Kirchner says. “We now will have a parent with enough financial means to make the vision really play out.” Privately held ReturnBuy does not disclose sales. Kirchner says the company intending to purchase ReturnBuy, whose name hasn’t been disclosed, plans to continue to run the business and grow it internationally.
Though it’s been a tough year for many in retail, Kirchner downplayed the impact of the current economic climate on company operations. “We’ve actually found our business to be fairly robust,” he says.
ReturnBuy’s bankruptcy filing listed debt of up to $10 million owed to more than 200 creditors.
Incorporated in fall of 1999, ReturnBuy has had a presence on eBay, where it sells returned and refurbished goods under three different brands, depending on the condition of the goods. Early last fall it launched a major expansion of its own web site, while continuing to operate its eBay stores.
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