PUBLIC NOTICE OF AUCTION: Virtually All Assets of Lobster Gram Int.

HOWARD B. SAMUELS, AS ASSIGNEE FOR THE BENEFIT OF CREDITORS OF GOURMET GRAM INT., INC. D/B/A LOBSTER GRAM INTERNATIONAL, INC. ANNOUNCES PUBLIC AUCTION OF ALL OF LOBSTER GRAM’S RIGHT, TITLE AND INTEREST IN AND TO ALL OF ITS ASSETS

1. Howard B. Samuels, not individually, but solely as Assignee for the Benefit of Creditors (the “Assignee“) of Gourmet Gram Int., Inc. d/b/a Lobster Gram International, Inc. (“Lobster Gram”), shall hold a public auction (“Auction”) in accordance with Illinois common law to offer for sale all of Lobster Gram’s right, title and interest in and to all of its assets.

2. The assets for sale consist of all of Lobster Gram’s right, title and interest in and to all of its assets whether tangible or intangible, real or personal or mixed, owned or lease (including indirect and other forms of beneficial interest) wherever located and by whomever possessed including but not limited to: (a) all tangible property, including but not limited to, cash, accounts receivable, office furniture, fixtures, computer hardware, machinery, equipment, goods, motor vehicles, leasehold improvements, inventory, work in process, tools, marketing records, customer lists, mailing lists, warranty records, sales literature and other sales aids, catalogs, accounting records, graphic materials, and pricing and information materials; and (b) all intangible property, including but not limited to, all contract rights and interests, all intellectual property including, without limitation, copyrights, trademarks (common and registered), trade names, service marks, service names, licenses, patents, permits, websites, domain names, email addresses, proprietary information, technical information and data, electronic systems and processes and other similar intangible property rights and interests, computer software, telephone/fax numbers and telephone listings (to the extent assignable), trade accounts receivable, open orders, prepaid expenses, promissory notes, all possible causes of action, contingent and unliquidated claims, filed and unfiled choses in action and goodwill (collectively, the “Assets”).

3. The sale is set for Wednesday, March 29, 2017 at 2:00 pm, CDT (the “Date of Sale”), in the offices of Rally Capital Services, LLC, 350 North LaSalle St, Suite 1100, Chicago, IL 60654 and the bid deadline is noon CDT on March 27, 2017.

4. On March 8, 2017, the Assignee received and accepted an Asset Purchase Agreement (“APA”) from an unrelated third party purchaser (“Purchaser”), for the Assignee’s right, title and interest in and to the Assets (the description of the assets being purchased is set forth in detail in the APA), in a single lot for a price of $1,571,585, inclusive of secured debt in the amount of $592,163, gift card liability of approximately $979,422 plus such other financial considerations which shall be made final by March 22, 2017, plus all interim advances (“Interim Advances”) expended by the Purchaser to operate the business from March 8, 2017 through the Date of Sale (collectively “The Purchase Price”).

5. The final purchase price will not be less than the foregoing and may be higher which will be finally determined by March 22, 2017.  The APA will be subject to the Assignee’s right to receive a higher and better bid from a qualified purchaser at the Auction.  To be a qualified purchaser, a party must, no later than noon CDT on March 27, 2017, submit to the Assignee a cash deposit (the “Deposit”) in the amount of $200,000 and a fully executed subsequent offer (“Subsequent Offer”).

6. Any Subsequent Offer from a qualified purchaser must include: (a) all of the terms and conditions set forth in the APA; (b) an amount for any additional considerations Purchaser determines by March 22, 2017, in Purchaser’s sole discretion; and (c) additional cash in an amount equal to: (i) bid protection of $94,295 (which could become higher depending upon the ultimate purchase price); and (ii) all Interim Advances.  The Assignee further reserves the right to determine the qualifications of any qualified purchaser including the ability to close the transaction on the terms and conditions referenced herein.  All bidding for the Assets shall be conducted in the same room with the identity and bid terms of all bidders fully disclosed and on the record as recorded by a court reporter.  All subsequent overbids shall be at least Twenty-Five Thousand ($25,000) greater than the then prevailing bid in the Auction; provided however, the Assignee reserves the right to change the minimum bid from time to time during the Auction.

7. At the conclusion of the Auction, the Assignee shall declare on the record which bid has been declared the highest and best bid accepted and shall recite the terms of winning bid into the record with the concurrence of the prevailing bidder. The balance of the purchase price must be paid to the Assignee within forty-eight (48) hours after the Auction.  If the successful bidder fails to pay the balance of its successful bid, then its Deposit will be forfeited and the Assets may, at the Assignee’s option, be sold to the next highest bidder without prejudice to or waiver of the Assignee’s rights and remedies against the defaulting highest bidder.  The Assignee reserves the right to adjourn the sale from time to time without further notice except as announced at the Auction.  Every qualified purchaser who participates in the Auction, including the Purchaser, accepts the terms and conditions provided for herein as well as the APA and have agreed to these terms and conditions.

8. Additional bid procedures are as follow:  the Assets sold or to be sold are being sold as a single lot “As Is” and “Where Is” and with no express or implied warranties, representation, statements or conditions of any kind including but not limited to warranties of merchantability or fitness for a particular purpose and are to be sold in accordance with the terms and provisions set forth above. Assignee is not transferring or selling herein any leased property, whether real or personal, whether evidenced by a true lease or a capital lease (unless the capital lessor so consents).  The Assignee reserves the right, on or prior to the Date of Sale, to modify, waive or amend any terms or conditions of the sale or impose any other terms or conditions on the sale, and, if the Assignee deems appropriate, to reject any bids or continue the sale (whether for all of the Assets or separate lots) without prior notice.

9. For further information regarding the Assets and to arrange for an inspection of the Assets, please contact Assignee as follows:

Assignee

Howard B. Samuels, Esq., Assignee
David N. Missner, Esq.
Jeffrey D. Samuels
Rally Capital Services, LLC
350 North LaSalle St., Suite 1100
Chicago, IL 60654
(312) 645-1975
[email protected]

Attorney for Debtor

Steven B. Towbin, Esq.
Shaw Fishman Glantz & Towbin LLC
321 N. Clark St., Suite 800
Chicago, IL 60606
(312) 855-4349
[email protected]

THIS DEAL WAS ADDED TO THE DAILY DAC OPPORTUNISTIC DEAL DATABASE ON 3/10/17. TO SEE MANY MORE DEALS INVOLVING FINANCIALLY DISTRESSED COMPANIES AND OTHER TIME SENSITIVE SITUATIONS, YOU CAN SUBSCRIBE HERE.