A U.S. Bankruptcy Court judge on Wednesday approved the sale of 50 Below’s retail assets to ARI, which beat out Dominion Enterprises, despite Dominion’s higher bid.
ARI bid $5 million for 50 Below’s assets, pledging to keep a majority of 50 Below’s 225 jobs in Duluth and move its powersports division to Minnesota, according to the Duluth News-Tribune. Other ARI divisions will stay in their current locations.
Dominion Enterprises bid $5,150,000 on 50 Below, but its bid was turned down by the bankruptcy trustee because the trustee believed Dominion would eventually shut down 50 Below’s Duluth offices. Lori Stacy, senior vice president of Dominion’s business solutions, said her company planed to leave 50 Below as it is for six months before integrating 50 Below’s assets into the rest of Dominion.
San Diego-based Emerald Connect purchased 50 Below’s financial services division for $3.5 million, and those accounts will leave Duluth. Both sales are expected to close in two weeks.
If ARI fails to close on its $5 million deal, the trustee will award the sale to Dominion, according to a court filing.
The sale of 50 Below’s assets come just two months after 50 Below filed for bankruptcy because the company owes $12 million to 20 creditors, including the IRS, the Minnesota Department of Revenue and the Minnesota Unemployment Insurance Program.
To read the full Duluth News-Tribune story, click here.