On July 19, bankrupt cataloger Downers Grove, IL-based Spiegel Inc. sold its flagship catalog to a New York-based entity known as Spiegel Catalog Holdings Corp. The group is led by the cataloger’s senior management, in partnership with San Francisco-based private equity firm Golden Gate Capital. Post closing, the business will continue to operate under the Spiegel name. Terms of the deal were not disclosed.
The Spiegel catalog and Internet businesses will be headquartered in New York with distribution operating out of Hampton, VA. Geralynn Madonna is president/CEO of Spiegel and Newport News Holdings Corp., a role she had before both catalogs businesses were put up for sales by Spiegel Inc.
Pangea Holdings, led by Spiegel Catalog’s former vice president of marketing and advertising production Christian Feuer, had its bid for Spiegel’s flagship catalog approved in bankruptcy court on June 15. Pangea on May 24 placed a “stalking horse” bid for Spiegel Catalog of $53.4 million in the form of $22 million in inventory commitments, $29.4 million in assumed liabilities, and $2 million in cash. Because there was no qualified overbid placed on June 15 in bankruptcy court, the bid was approved.
The Spiegel transaction is similar to the Newport News deal announced on June 24. The three principals of Pangea Holdings are shareholders in Spiegel Catalog Holdings Corp., and will act as investors and consultants to management. But Pangea as a holding company, “is no longer involved in the Spiegel deal,” says Newport News spokesperson Sonya Hartland.