Three licensing-related companies appear headed through bankruptcy court to new owners within the next few weeks, but not without some pushback from creditors.

• Northwest Co.   U.S. Bankruptcy Court Judge Michael Wiles, White Plains, NY, approved an order selling the licensed textiles company, which filed for bankruptcy on April 18, to former supplier Ashford Textiles.
  Ashford, a creditor listed as being owed $25 million, beat out fellow textile supplier Cathay Home with a $31 million bid, which includes assumption of several licensing agreements outside of those with Disney/Marvel, according to court documents. A hearing on the proposed sale is set for Thursday (Aug. 27).
  Ashford is said by insiders to be planning  to expand its licensing business in addition to being a contract manufacturer, and to hire some former Northwest executives.
  In addition to Ashford, other unsecured creditors including NFL Properties ($3.3 million); Major League Baseball ($672,291); Disney ($650,001); and Marvel ($276,690).

• Rubie’s Costume Co. The company filed for bankruptcy in April and has proposed selling the company to Rubies II, a newly formed entity in which the Beige family (which has a controlling interest in the current company) would have a 30% stake.
  The proposed sale is set for a hearing in U.S. Bankruptcy Court, Brooklyn, NY on Sept. 23. Warner Bros. is the largest unsecured creditor ($1.4 million); Marvel, the only other licensor listed, is owed $850,606.
  “The (creditors) committee remains concerned that the proposed bidding procedures are not designed to attract higher and better offers but rather ensure that the ‘insider’ purchaser is the successful purchaser,” the committee wrote in a letter to U.S. Bankruptcy Court Judge Alan Trust. Rubies executives weren’t available for comment.
  The company has been operating under a series of forbearance agreements since its $150 million credit pact expired last year. One of the banks, Wells Fargo, declined in April to extend the agreement, which triggered the bankruptcy filing.
  Rubies revenue dropped 13.5% to $268 million in the year ended Dec. 31. Sales are forecast to fall another 18% this year to $220-$230 million, according to court documents. The company said in its filings that part of the sales decline was tied to licensors ending exclusive agreements.
  It posted a higher-than-expected increase in orders during the first quarter of 2020, but sales dropped amid the pandemic, the company said.

• Centric Brands. The publicly traded company (formerly known as Differentiated Brands Group) bought Global Brands Group’s North American licensing business for $1.38 billion in 2018. It filed for bankruptcy in May and reached an agreement for $435 million in debtor-in-possession financing. One of the companies supplying the financing, Blackstone Investment Management, would get an equity stake in a newly private company.
  Several creditors are opposing the proposed payments they would receive under a reorganization plan. For example, according to court documents, licensor Under Armour says it’s owed $834,357 in royalties, but would get $75,000 under the proposed plan.