IMedia Brands announced on Friday that it has reached an agreement to sell a significant portion of its assets to an affiliate of RNN National Media Group. This asset and equity purchase deal will result in RNN’s affiliate acquiring assets such as ShopHQ Networks, J.W. Hulme, and Christopher & Banks for approximately $50 million, in addition to assuming certain liabilities, contracts, and ongoing expenses. iMedia ensures that operations will continue without interruption.
The execution of this deal will take place through iMedia’s chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. Concurrently, the court has approved $15 million in new debtor-in-possession financing from iMedia’s existing secured lenders and RNN, in connection with the planned transaction.
Last month, iMedia filed for chapter 11 bankruptcy, but this recent news has had a positive impact on the company’s stock performance. In the after-hours market, shares saw an increase of nearly 40% to 15 cents as of 4:22 p.m. ET, although they had experienced a 19% loss during the day’s regular session.
The transaction is set to close in August, according to both companies.
RNN National Media Group is privately owned and boasts the largest group of independent broadcast stations in the U.S.