MISSOULA, Mont. - After hearing testimony from Vann's representatives and attorneys standing in for various creditors, a bankruptcy judge approved the sale of Vann's to McMagic Partners, LP Friday afternoon.
Richard Samson, the court-appointed trustee for Vanns, tells NBC Montana that the sale is expected to close Monday, November 5.
Vanns is being sold for $4.5 million, and the proceeds of the sale will go to pay senior creditors GE Commercial Distribution Finance Corporation and First Interstate Bank. GE will be paid in full, receiving $3.3 million and First Interstate will get around $1.2 million.
First Interstate is not getting everything they are owed, and Samson credits the bank's willingness to compromise as a key factor in closing the deal.
"Everybody worked very hard on this, but if I had to pinpoint one party that was useful or helpful, it would have to be First Interstate Bank here in Missoula. They've bent over backwards and they're coming up short in this sale. But they're a very community minded bank, and at the end of the day, they wanted to see jobs preserved across the state."
Vann's is based in Missoula and has stores in Kalispell, Hamilton, Bozeman and Billings and a warehouse in Lolo. The company filed for bankruptcy protection in August.