Cache Inc. filed a motion in the US Bankruptcy Court for approval of auction procedures to select a liquidation agent on February 4, 2015. The debtor seeks the Court's approval on an agency agreement to conduct store-closing sales with SB Capital Group LLC and Tiger Capital Group, LLC the staking horse bidders. Pursuant to the agency agreement dated February 4, 2015, the staking horse bidders would purchase the merchandise for a guaranteed percentage of 82% of the aggregate cost value of the merchandise.

The cost value of merchandise is estimated to be between $3.5 million and $15 million. To qualify as a qualified bidder, interested parties should submit their bids by February 23, 2015 along with good faith deposit equal to 10% of the bid value. The initial minimum overbid must exceed the stalking horse bid by an amount at least equal to 1% of the cost of value of the merchandise.

The debtor has scheduled an auction on February 26, 2015. At the auction, the subsequent bids would be in increments of 0.10% of the cost of value of the merchandise. The stalking horse bidder would be entitled to a break-up fee of $0.23 million and expense reimbursement of $0.1 million in case of termination of the agency agreement.

The sale hearing is scheduled for March 3, 2015. The estimated closing date for the transaction is March 4, 2015. The proceeds from the agency agreement shall be paid over by debtor to the DIP lender pursuant to proposed DIP financing arrangements between debtor and DIP lender.

Scott K. Charles and Neil M. Snyder of Wachtell, Lipton, Rosen & Katz acted as legal counsels.