Bankruptcy

Pike Nursery Assets Sold At Auction, Subject To Court Approval.

By Scott Riddle

The auction of Pike's assets was held, and based upon this pleading filed today, the results are the following (subject to Court approval) -

(a) The Debtor accepted a bid for its "retail" assets by Armstrong Garden Centers, Inc. ("Armstrong") for a sale price of approximately $5,184,000 (the "Armstrong Sale "). The purported allocation of that price is $2,000,000 for real property in Charlotte, $800,000 for the "Pike Nursery" name  and other personal property non-inventory assets at the retail locations and $2,384,000 for inventory assets  at the retail locations. Of the assets sold, PNC has a first priority lien $3,184,000 of the assets. Upon information and belief, the anticipated book value of the inventory at the retail locations is $2,860,000 and  the value of the "Pike Nursery" name and non-inventory assets is substantially in excess of $800,000. 

(b) The Debtor accepted a bid by Geo. Schofield Co., Inc. ("Schofield") for all of the assets at Store 28 and the "hardscape inventory" at Stores 52 and 55 for a purchase price of $1,200,000  (the "Schofield Sale"). PNC has a first lien on all assets being sold in the Schofield Sale. Upon information and belief, the value of the inventory alone subject to the Schofield Sale is $1,535,684.

(c) The Debtor accepted a bid by Skinner Nurseries, Inc. ("Skinner") for all of the assets at Stores 44 and 46 for a purchase price of $1,000,000, which price is subject to certain holdbacks  pending resolution of cure claims and lease issues (the "Skinner Sale"). PNC has a first lien on all assets  being sold in the Skinner Sale. Upon information and belief, the value of the inventory alone subject to the Skinner sale is $1,358,323.

(d) The Debtor accepted a bid from Gary Pike ("Gary Pike") to purchase certain of the ssets of Store 52 and 55, which are not subject to the Schofield Sale, for a purchase price of $490,000 (the "Gary Pike Sale "). PNC has a first lien on all of the assets being sold in the Gary Pike Sale. Upon information and belief, the value of the inventory alone subject to the Gary Pike Sale is $863,221.

The gross proceeds of the Armstrong Sale, Schofield Sale, Skinner Sale and Gary Pike Sale (collectively the "Auction Sales"), appear to be approximately $5,874,000, an amount more than $1,000,000 in excess of PNC's anticipated debt on such assets at closing. After consummation of the Auction Sales, if they were to occur, the Debtor will have accounts receivable with a book value in excess  of $2,000,000 and will have assets at its Birmingham facility with a book value in excess of $700,000.

Full post as published by Georgia Bankruptcy Blog on February 27, 2008 (boomark / email).