Bankrupt DVS Shoe preparing auctionby on May 24, 2012
DVS Shoe, the American action sports company that filed for Chapter 11 bankruptcy protection last week, is hoping to draw bids of at least $4.3 million at an auction to be held in June – if approved by the bankruptcy court. The company filed for bankruptcy protection under a procedure known as Section 363 sale. It allows a “stalking horse” to come forward as a preferred bidder, in this case an unidentified party that made a cash offer of $4 million and fees. DVS, which is owned at a majority by the Dunlap family, said it had been struggling to reduce its debt for the last three years as its sales suffered from the economic downturn. Its turnover is expected to reach about $45 million this year, down from $53.8 million last year.