Posted: Nov 8, 2012 8:50 AM by Mike Powers (KPAX Missoula)
Updated: Nov 8, 2012 9:05 AM
MISSOULA - The bankrupt Vann's electronics and appliance store chain now has a new owner.
Jerry McConnell, the outgoing CEO of Vann's, has confirmed to Montana's News Station that the sale is a done deal.
The move was approved by a bankruptcy judge on Friday, and McConnell says the money has now changed hands.
The Texas-based company McMagic Partners LP is the new owner, with a new CEO set to be in place by Monday.
McConnell said it couldn't have been a better option for Vann's to get out of bankruptcy adding that McMagic Partners is a great company.
Vann's was more than $13 million in debt, and filed for bankruptcy in early August. The business has been sold as a "going concern business," so no liquidation sale will be held.
McMagic Partners offered to buy Vann's for $4.5 million, and the agreement means employees across Montana will keep their jobs and some creditors will be paid as soon as the deal closes.
Vann's has five stores and a distribution center in the state, and employs about 150 people.