The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of the certain assets of New Rue21 Holdco, Inc. on May 23, 2024. The Court approved the asset purchase agreement between the debtor and YM Inc., for the sale of certain assets for a purchase price of $3.98 million plus an amount in cash equal to the Closing Date Payment plus the assumption of Assumed Liabilities, plus $1,500 to cover the costs and expenses associated with the Sale Deposit Account Agent Agreement. To qualify as a qualified bidder, interested parties should submit their bids by May 28, 2024.

The initial minimum overbid should be in the amount of $0.15 million more than the initial purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on May 29, 2024. At the auction, the subsequent bids would be in increments of $0.15 million.

The stalking horse bidder would be entitled to a break-up fee of $0.09 million and expense reimbursement of $0.08 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for May 30, 2024. The sale closing shall be occurred on May 31, 2024.