BIDDING DOCUMENTS (V.1), 2020-04-211 MQ Retail AB in Bankruptcy
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PRELIMINARY BIDDING DOCUMENTS (v.1), 2020-04-211 MQ Retail AB in bankruptcy Background MQ Retail AB, Swedish reg.no 556699-0262 (“MQ“), was declared bankrupt on 16 April 2020, whereby Lars-Henrik Andersson was appointed as official receiver by the District Court of Gothenburg. Simultaneously, MQ group’s parent company MQ Holding AB, Swedish reg.no 556697-2211 (“MQ Holding”), was declared bankrupt. The bankruptcy estate of MQ (the “Estate”) hereby offers the business assets as is (debt free) for sale in accordance with the below. The assets are offered as is and are only available to the extent the Estate has full disposal over such assets. Continued Business Operations and Sales Process In order to maintain the current value of the business assets and to sell MQ as a going concern, the Estate will during the bidding period maintain MQ’s business operations by way of a sale through MQ’s e-commerce shop marqetstores.se and 120 physical concept stores in Sweden. Interested parties of the business assets are hereby invited to present written bids, on the business as a whole or for parts of the assets, addressed to the bankruptcy estate, by sending an e-mail to Rikard Lemming, [email protected], on Tuesday 28 April 2020 at 13.00 CET at the latest. All bids shall clearly specify name and contact details of the bidder and include an explicit purchase price in SEK. All bids shall be financed and prepared for cash payment at closing. After evaluation of presented bids, selected bidders will be invited to interviews with management, visits to the premises and be provided with more detailed information, prior to signing a written non-disclosure agreement (NDA). Cash bids on all assets will be prioritized before bids on specific assets in the selection between bidders. The Estate reserves the right to value presented bids on an ongoing basis, as well as the right to make a sale in advance (Sw. fri prövningsrätt). This preliminary bidding document with appendices shall not be considered as a binding offer (Sw. bindande anbud). Binding transfer of the business or specific assets is subject to a written agreement signed by the Estate and the buyer. For more information regarding the company and the sales proceedings, kindly contact any of: Lars-Henrik Andersson, [email protected], +46 76-617 08 22, Rikard Lemming, [email protected], +46 76-617 09 69; or Jessika Lagebro, [email protected], +46 76 617 09 22. 1 Please note that the content of this preliminary bidding document is solely based on information received from representatives of the company in bankruptcy, official registers etc. The Estate may not be held liable for any potential errors or inaccuracies stated herein. The information stated herein may from time to time be supplemented and/or adjusted, subject to the Estate’s ongoing investigation and evaluation of the company’s assets and business. Interested buyers will in such case be informed of any such supplements and/or adjustments. 1 The Business The business history of MQ, as a Swedish retailer of men’s and women’s fashion, started during the 1950s. The brand MQ was created in 1988. MQ Holding was listed on NASDAQ OMX Stockholm in June 2010. MQ Holding is the parent company of the MQ group, including the two Swedish retail chains MQ (renamed to MarQet during 2020) and Joy through Joy Shop AB (declared bankrupt on 18 March 2020). MQ is headquartered in Gothenburg and has around 700 employees, with a production office in Shanghai. MQ offers a wide range of quality clothing as well as selected lifestyle and work accessories through the e-commerce platform marqetstores.se and around 120 physical concept stores in Sweden. See further details on MQ’s website https://www.marqetstores.se/. MQ is a wholly owned subsidiary to MQ Holding, Appendix 1. Financial Statements The net turnover of MQ has, during the latest four financial years, been steady around SEK 1.4 billion, plus/minus approx. SEK 100 million. Further, the business of MQ has historically been profitable and has generated positive revenue up until the end of financial year 2017/2018 (SEK 80 million). Thereafter until the date of bankruptcy, the revenues have been negative as a result of declining sale due to, amongst other things, change in consumers’ behaviors, the covid-19 virus etc. The latest annual accounts regarding the financial year 2018/2019, Appendix 2. The latest preliminary balance sheet as of the date of bankruptcy, Appendix 3. Assets The assets of the bankruptcy estate are essentially as follows: 1. E-Commerce Platform, Related Software and Technology etc. MQ uses an e-commerce platform with other systems integrated, see the attached overview Appendix 4. The e-commerce platform includes solutions for: - ”Frontend” and CMS, visual website - EPI Server DXC - Product information management - InRiver PIM - Payments solution - Klarna - FAQ and chat - ImBox Chat - Order, customer service and returns - Viskan ETM + Instore - Product, pricing and inventory - EG Retail Bridge - Stock balance - DHL Storage In addition to the e-commerce platform MQ uses other business intelligence tools such as Microsoft Office licenses and Microsoft Azure. A more detailed description of MQ’s technology and systems and business intelligence tools may be provided later. 2 2. Customer Data A database of registered customers containing approx. 891,742 unique names of which 880,365 customers are contactable by post, 497,989 via text message and 337,956 via email. The database contains the following customer information: - Names - Addresses - Email-addresses - Age - Phone number - Transaction history 4,042 customers are registered to MQ’s newsletter. The customer data may only be transferred in accordance with Swedish GDPR laws. 3. Employees MQ has around 700 employees, whereof approx. 90 employees are allocated at the headquarters in Gothenburg, which all will be discharged by the Estate. Please note that employment agreements are not automatically transferred together with the business. Transfer of employees requires the buyer to execute new employment agreements with all employees. Contact details of all employees will be provided to the buyer after finalizing the purchase. Transfer of such information may only be transferred in accordance with Swedish GDPR laws. 4. Brands, Design and Domain Names Domain names, including but not limited to “mq.se”, “marqetstores.se” and “marqetstores.com”, Appendix 5a. Swedish and European registered brands, including but not limited to “MQ”, ”MQ Market” and “Bondelid”, Appendix 5b. 5. Fixed Assets MQ has around 120 fully equipped concept stores, storage facilities and office premises, with necessary furnishing, equipment, inventory including mannequins, cash registers, computers and other technology, mechanical equipment etc. Machines, technical equipment, computers and installations etc. have a total book value at approx. SEK 59.5 million as of 16 April 2020. A more detailed description and further information may be retrieved through https://cirio.se/news/. 6. Premises Leased premises for concept stores, storage facilities, offices etc., Appendix 6. Total rent cost for the premises amounts to approx. SEK 16.9 million per month, including costs for electricity, water, heating, sewage, waste etc. The total rent cost is estimated by calculating average costs according to the accumulated accounts of 2019. 3 According to the Swedish land code, commercial lease agreements may only be transferred subject to the landlord’s prior consent. However, a buyer of the business as a going concern (Sw. rörelseövergång) may, subject to certain requirements, be entitled to acquire the lease agreement on current lease terms, without such consent from the landlord. Commercial lease agreements and further details may be provided later. 7. Supplier, Customer and other Material Agreements MQ has cooperated closely with several international suppliers, agents, tailors etc. Please note that agreements are not automatically transferred together with the business. Transfer of agreements requires the buyer to execute new agreements with relevant parties. A more detailed description may be provided later. 8. Stock MQ’s booked value of the stock as of the date of bankruptcy amounts to approx. SEK 310.2 million, Appendix 7. Please note the Estate will conduct a sale of the inventory, which means the stock balance will continuously be subject to discrepancies and variations, and the Estate will therefor accept bids which in this part are related to a percentage of the booked stock value or similar. Updated stock balances may be provided later and in such case be retrieved through https://cirio.se/news/. _________________________ 4 Table of Contents 1. Bilaga 1 - Aktiebok, MQ Retail AB (FINAL) 1 2. Bilaga 2 - MQ Retail ÅR 3 3. Bilaga 3 - BR MQR 1909-2004 24 4. Bilaga 4 - E-handelsplattform 32 5. Bilaga 5a - Domännamn 33 6. Bilaga 5b - Varumärken 34 7. Bilaga 6 - MQ Retail och Joy Shop Hyresvärd Master 36 8. Bilaga 7 - Varulager 39 AKTIEBOK / SHARE REGISTER APPENDIX 1 Firma / Company Name: MQ Retail AB Organisationsnummer / Corporate Registration Number: 556699-0262 Denna aktiebok ersätter tidigare aktiebok / This share registers replaces the previous share register Förbehåll / Restrictions: N/A Aktienummer / Share Antal aktier / Number Inregistrerad i aktieboken (datum) / Aktiebrev utfärdat (datum) / Share Aktieägare / ID-nummer / ID- Ref numbers of shares Registered in the share register (date) certificate issued (date) Shareholder number Adress / Address Land/Country Pantsättning / Pledge Aktier pantsatta till DNB Bank ASA, Sweden Branch den [**] mars 2019 / Shares pledged MQ Holding AB Box 119 19, 404 39 to DNB Bank ASA, Sweden Branch on [**] 1 1 1 000 1 000 4 maj 2006 / 4 May 2006 2 maj 2006 / 2 May 2006 (publ) 556697-2211 Göteborg Sverige/Sweden March 2019 1 000 Kommentarer / Comments N/A APPENDIX 2 A APPENDIX 3 MQ Retail AB Business Standard 12.10.0.1 Balansrapport med jmf mot föreg år Innevarande period 202001 - 202008 Text IB Förändring UB TILLGÅNGAR ANLÄGGNINGSTILLGÅNGAR Immateriella anläggningstillgångar 21 214 357,01 3 916 527,90 25 130 884,91 1012 Balanserade utgifter för 31 695 363,95 7 077 126,36 38 772 490,31 dataprogram 1019 Ack.