Pop King Inc., founded by Steve Schanes and with the involvement of longtime Diamond executive Bill Schanes, is offering to buy the consignment inventory belonging to Diamond vendors currently stored at Sparkle Pop’s Olive Branch, Mississippi warehouse. The offer, sent to the roughly 140 consignment vendors listed in court documents, comes in the wake of a proposed settlement between the bankrupt Diamond estate and 15 consignment vendors that would eliminate Diamond’s claims on their inventory (see “Settlement Proposed”).
Under the terms of the proposed sale at a price to be negotiated with each vendor, Pop King would take over the retrieval, transportation, storage, marketing, and sale of the inventory, which it would process at a facility it is renting near the Olive Branch warehouse. Pop King has also hired a local operations veteran to oversee the process. As an alternative, Pop King is also offering to handle the retrieval and return of the inventory to the vendor’s warehouse on a service fee basis.
Pop King’s proposed purchase of consignment inventory requires that the inventory is available and can legally be released. That requirement may have been complicated this week by the objection to the proposed settlement by Sparkle Pop, which operates the Olive Branch warehouse and has asserted claims to the inventory for unpaid fees and rent (see “Sparkle Pop Objects”).
Source: ICv2
