Purchase, NY– Tweeter Home Entertainment Group, which filed for bankruptcy protection last month, has been purchased by Schultze Asset Management, a Purchase, New York, investment firm, for $38 million cash. Tweeter representatives said it will continue normal operations pending completion of the acquisition.
Tweeter is seeking court approval for the transaction at the U.S. Bankruptcy Court in Wilmington, Delaware. If approved, the sale of the specialty A/V will likely close Friday afternoon.
Both Tweeter and Schultze are very excited about this pending acquisition and are committed to emerging from this restructuring process as a stronger, more competitive organization focused on delivering an outstanding service experience to our customers, said Tweeter president/CEO Joe McGuire in a statement. The conclusion of this auction represents a very positive outcome for our employees, customers and business partners. We look forward to completing the sale transaction.
Other confirmed bidders included Whippoorwill Associates and Bay Harbour Management, which teamed up to make a $10 million offer for Tweeters Tivoli ownership interest. Founded in 1998, Schultze Asset Management is an alternative investments firm specializing in distressed and special situations investing. The firm manages approximately $725 million in assets on behalf of institutional and high net worth clients located throughout the world.