Delivery Agent, the electronic commerce company that works with several TV programmers and made Katy Perry’s Super Bowl XLIX halftime show in 2015 “shoppable,” announced Thursday (September 15) that it had filed voluntary Chapter 11 bankruptcy and is seeking a sale.
San Francisco-based Delivery Agent filed for voluntary Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, and announced it has obtained a commitment for debtor in possession financing that will, if approved by the court, will provide the Company with the necessary liquidity to maintain normal business operations during the Chapter 11 process.
The Wall Street Journal said the filing comes after Delivery Agent’s plans for an IPO failed, and that it hopes to clear more than $65 million in unsecured debt, noting that it had $20 million in unpaid bills after shutting down a Denver-based agency called The Band that serves as a sales representative for cable operators and satellite providers.
Delivery Agent said it will be soliciting competitive bids “with the goal of maximizing value for all stakeholders,” adding that the sale process is on a “fast track” that is aiming for completion by year-end.
Company founder and CEO Mike Fitzsimmons characterized this as “a very positive development for our company and our customers…Through these proceedings we’re initiating a process that preserves company value, allows the company to reorganize its business affairs, and establishes a necessary foundation for future growth and profitability."
“We will continue to deliver outstanding services to our partners today, throughout the Q4 holiday season, and beyond,” he added.
From the TV world, Delivery Agent’s list of clients include Discovery, NBCU, Fox, CBS, HBO, Showtime, CBS, FX, Turner, Comcast, Cablevision Systems, AT&T, and Verizon, among others, along with studios such as Lionsgate, Legendary, and Sony Pictures.
Per documentation tied to the filing, related debtors include Clean Fun Promotional Marketing, MusicToday LLC, and Shop the Shows LLC.
Matthew English, CTP and Howard Bailey, CTP of Arch + Beam are serving as the company’s financial advisors; Keller & Benvenutti LLP and Pachulski, Stang, Ziehl & Jones LLP are serving as legal advisors; and Houlihan Lokey is the Company’s investment banker.