June 25, 2008

That's Right, The Right Start Is Seeking To Buy Babystyle

An anonymous commenter just left an unconfirmed comment about the future of babystyle, so take it for what it's worth:

I heard through the grapevine that The Right Start is supposed to buy Babystyle on July 8th. There is a court hearing that day to handle the 'auction' sale of the all things Estyle.
Well, I just checked the bankruptcy court filings, and it's true: on June 20th, babystyle submitted for court approval a purchase agreement with The Right Start, a privately held chain of baby stores. The sale price for babystyle's assets, including retail leases, is $5.5 million, excluding cash and receivables of just under $1 million.

To complete the sale, the court will hold an auction on July 8th; if no higher bidders come forward, the TRS deal will go through. The sale is only for babystyle's operating assets and almost none of its liabilities. Like gift cards or store credits. If you have a babystyle gift card lying around, I'd say you have a very few days left to use it, so hop to. As for current creditors of babystyle, they're looking at getting around 20 cents on the dollar if the TRS deal goes through at this price.

Previously: Babystyle files for Ch. 11 bankruptcy

5 Comments

This is an interesting situation: The Right Start is a company already pushed to the extreme where human resources are concerned. Only a few of their stores make money as it is...not sure this will help or hurt their situation. Seems to me a company should get their act together before adding to the mess....

[the CEO put in when private equity firm Hancock Park bought TRS from the FAO Schwarz liquidation in 2004: "We expect [the 34-unit chain] to be a 75- to 100-unit chain in a three- to five-year time period." It's currently 33 locations, plus babystyle's 11. -ed.]

5.5 mil is not that bad, granted you don't get any of the liabilities. I'd shut down all but probably 4 stores and work it that way.

My wife was contemplating whether we could buy it with investors. LOL I told her I didn't want it and would rather just keep our one baby/kids store in San Diego for now.

Wow, interesting. I also heard that they purchased the Tiny Ride and Tiny Bed Web Sites. This could be huge for the baby gear world. Two great companies and one awesome website. What's next Babies R Us buys Pottery Barn Kids? I hope Babystyle doesn't go away completely. They're great stores!

It is confirmed and final, TRS has purchased BabyStyle, however they did not purchase their debt. Have a babystyle Gift Card? GO USE IT NOW!

Who cares who bought them. As long as babystyle is still in business. Great stores and what a great concept. My wife just loves them!

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