Party-goods supplier Event Rentals Inc. is kicking off the week in bankruptcy with a Monday auction of its assets.
A group of the company’s senior lenders, including Cerberus Capital Management, has been approved as the lead bidder with a $124 million credit bid. If it emerges as the winner, the lender group would forgive Event Rentals’ debt in exchange for the company’s assets.
Event Rentals filed for bankruptcy protection on Feb. 13 with roughly $148 million in assets and $246 million in liabilities. The company blamed its financial problems on an ill-timed growth spurt and the reluctance of corporations in recent years to throw lavish parties.
On Tuesday, plus-size women’s clothing retailer Ashley Stewart will seek a Trenton, N.J., bankruptcy court’s blessing of its proposed sale to Clearlake Capital Group for approximately $18 million.
Clearlake, a private-equity firm that specializes in distressed investing, emerged as the lone bidder for the clothing company’s remaining stores, leading Ashley Stewart to cancel a planned auction. Depending on the value of Ashley Stewart’s remaining inventory, Clearlake’s total purchase price could rise as high as $23 million.
Ashley Stewart’s parent company, Ashley Stewart Holdings Inc., filed for Chapter 11 protection March 10 without identifying a potential buyer. Since then, the company has closed 27 of its 168 stores nationwide and has begun the process of closing 23 others, according to court filings.
Across the country, another bankrupt company will seek court approval of a proposed sale next week: Girls Gone Wild.
On Wednesday, the producer of explicit videos will present the Los Angeles bankruptcy court with a roughly $1.8 million offer from a group of investors led by Liquidity Capital Group.
The purchase would be the first foray into adult entertainment for Liquidity Capital, which invests in distressed companies.
Four of the companies behind Girls Gone Wild’s operations filed for Chapter 11 in February 2013 to block Las Vegas entertainment kingpin Steve Wynn and his resort company from taking the companies’ assets as repayment for Girls Gone Wild founder Joseph Francis’s gambling debts.
-Tom Corrigan and Katy Stech contributed to this article.
Write to Sara Randazzo at sara.randazzo@wsj.com. Follow her on Twitter at @sara_randazzo.
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