The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Crumbs Bake Shop, Inc. on July 25, 2014. The Court approved the asset purchase agreement between the debtor and Lemonis Fischer Acquisition Company, LLC, the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $6.50 million in credit bid. To qualify as a qualified bidder, interested parties should submit their bids by August 19, 2014.

A bid shall be accompanied by a good-faith cash deposit in an amount of not less than $0.30 million. The initial minimum overbid should be in the amount of $0.28 million more than the initial purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on August 21, 2014.

At the auction, the subsequent bids would be in increments of $0.05 million. The stalking horse bidder would be entitled to a break-up fee of $0.08 million and expense reimbursement of $0.13 million in case of termination of the asset purchase agreement. The objections to the sale shall be filed by August 25, 2014 and sale hearing is scheduled for August 26, 2014.

The sale shall consummate by August 29, 2014.