Sparkle Pop submits their Certification They’ve Stopped Selling Consigned Inventory

Last week, the court released their decision as to what to do about Sparkle Pop having sold consigned inventory when they shouldn’t have during Diamond’s chapter 11 process.  It was a rather open and shut case in a general sense, so it was all about the details with this one as to how it needed to be resolved. The court decided:

1. Sparkle Pop needs to stop all sales, marketing, and advertising of the goods held on consignment. Sparkle Pop has said they’ve already stopped, so this one was pretty open and shut. Sparkle Pop still needs to file a written Certification to the court that it has complied.
2. Sparkle Pop needs to provide to Diamond and to two of the groups representing some publishers a detailed account, certified by an officer of Sparkle Pop, that has the name of the vendor who provided the product, the name and title of the product, the SKU, and other identifying information, the gross sale proceeds received, the quantity sold and date sold, and the manufacturer’s retail price of the product.
3. Sparkle Pop needs to pay the gross proceeds of the sale of the consigned inventory into the Registry of the Court. It’ll be held by the court until other decisions have been decided. If any other money comes in due to this, that’ll be turned over too.
4. The TSA and APA Sparkle Pop agreed to is still in force.
5. Diamond’s move for damages included attorneys’ fees and costs related to the recovery will be heard at a later date.
6. JPMorgan Chase Bank’s claims and liens when it comes to the consigned inventory isn’t impacted by this.

Sparkle Pop has submitted their paperwork that certifies they have stopped selling the consigned inventory and removed it from the website and marketing.

I hereby certify that Sparkle Pop has removed all Consigned Inventory (as defined in the Order) from its (and/or any affiliate of Sparkle Pop’s) website, order forms, marketing materials and all other forms of product marketing and sales materials as of the date of the Consent order;

Sparkle Pop has ceased all sales of Consigned Inventory as of the date of the Consent Order.