Chapter 11 Acquisition Opportunity Intellectual Property Assets

Vanity® and Vanity.com

Bid Deadline: October 23, 2017 at 5:00 PM ET

 

VANITY_Logo

 

The Debtor is seeking offers to acquire its intellectual property. Bids are being solicited for its premium domain name Vanity.com and the Vanity.com® trademark, and for the Vanity® brand and customer database.  All offers are subject Bankruptcy Court Approval following an Auction at which additional offers may be considered. Set forth below are the details of the asset packages and key dates for the sale process:

Vanity.com Package

  • Stalking Horse Bidder: Media Options S.A
  • Purchased Assets:
    • Premium Domain Names: Vanity.com and Vanity.net
    • Trademark: Vanity.com® 
  • Purchase Price: $100,000
  • Minimum Overbid: $115,000 
  • Package Highlights:
    • Premium Domain Name – Vanity.com is a brandable domain that generates significant organic traffic
    • The www.vanity.com website generated approximately 4,266,955 total sessions and 2,080,847 unique visitors in calendar year 2016
    • 1,087,312 sessions originated from organic search and 1,126,497 sessions were from direct type-in traffic

 

Brand & Customer Data Package

  • Purchased Assets:
    • Trademarks: 15 TM Registrations for Vanity®
    • Domain Names: VanityShops.com and eVanity.com 
    • Customer Database with 1.5MM unique customer files
  • Opening Price: $67,500
  • Package Highlights:
    • National retail store product brand and nameplate
    • Vanity® trademarked in multiple product categories including apparel, and accessories.
    • Approximately 1.53MM unique Opt-in Customer E-mail Addresses with over 1MM linked to the Vanity Rewards Program 

 

Key Sale Dates

  • Bid Deadline: October 23, 2017 @ 5:00PM CST 
  • Auction Date: October 25, 2017 @ 10:00AM CST 
  • Sale Hearing: October 26, 2017 @ 9:30AM CST

 

Additional Bidder Information

Bidders may bid on the Vanity.com Package and the Vanity® Brand & Customer Data Package separately or together.

A Bid Submission Form containing bidding instructions will be provided by Hilco Streambank representatives. 

INTRODUCTION

Vanity Shop of Grand Forks, Inc. has agreed to sell its intellectual property assets which includes the Vanity® brand and related private label brands, trademarks, Vanity.com and other domain names, e-commerce code and customer data. The sale is subject to approval by the United States Bankruptcy Court for the District of North Dakota. 

 

BACKGROUND

From its roots as a Midwestern dress shop in the 50s to its first juniors focused specialty store in Fargo, ND in 1969, Vanity® has provided fashionable young women low-cost, high quality apparel and accessories for over 50 years.  As of March 2017 Vanity® operated 137 stores across 27 States.  In addition, Vanity® operated its e-commerce channel through the www.vanity.com, www.evanity.com and www.vanityshops.com URLs.

For over half a century, the Vanity® brand has resonated among young women looking for clothing and accessories that are both trend right and affordable.  Although originally juniors focused, the Vanity customer trended toward fashion conscious women ranging from 20 – 35 years old. Vanity® differentiated itself from its competitors by providing customers a broader selection of sizes throughout various product categories utilizing Vanity®’s proprietary assortment of fits and styles. 

 

FINANCIAL OVERVIEW

In FY 2016 the Vanity® brand generated total revenue of $90 million.  The e-commerce channel generated revenues of over $4MM in FY2015 and $6.5MM in FY2016. 

Vanity 4 Year Financial Overview

  • FY2016 Total Revenue: $90MM
  • FY2015 Total Revenue: $98.1MM
  • FY2014 Total Revenue: $99.5MM
  • FY2013 Total Revenue: $115MM

 

Potential Areas for Growth

Multiple channels of distribution exist for the Vanity® brand including:

  • E-Commerce with a world-wide recognized brand and Domain Name
  • Potential U.S. & International Licensing in multiple categories
  • Stores in key locations and outlets
  • Potential retail house brand or wholesale apparel brand 


DILIGENCE & SALE PROCESS

Data Room: Access to an online Data Room will be provided to interested parties upon execution of a non-disclosure agreement.

Bid Submission: Bidding instructions will be provided by Hilco Streambank in advance of the bid deadline.

Bid Deadline: October 23, 2017 at 5:00 PM CST