Acquisition Opportunity

Andrew Morgan Collection

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Intellectual Property and Related Assets

Bid Deadline: November 24th, 2015
Auction Date: TBD

INTRODUCTION

Hilco Streambank has been retained as the exclusive agent for the purposes of marketing and selling the intellectual property and related assets (the “Assets”) of the Morgan Collection (the “Company”). The assets are being sold through a general assignment for the benefit of creditors proceeding pending in New York (an “ABC Proceeding”). Steve Mitnick the Assignee for the Benefit of Creditors (the “Assignee”) has retained Hilco Streambank as his exclusive agent.

BACKGROUND

Founded in 1999, Andrew Morgan Collection® was an innovative textile design and manufacturing company. The Company’s core collection included throws, blankets, bed scarves, bed wraps and other luxury accessories. Their proprietary and patented line of removable box spring covers called the BedSok® served as the company’s flagship product. To complement the BedSok® line the company also created ModSok® serving as slipcovers for lounge, dining and bedroom accessories.

Tempur-Pedic America, LLC licensed the intellectual property under agreements entered into in mid-2014. The Tempur-Pedic agreements provided for minimum commitments of $3.6 million during the twoyear term. The agreements are no longer operative as a resultof events in the ABC proceeding.

The Company also had a strong base of hospitality industry clients, including a growing number of the world’s premier hotels and spas, such as The Ritz Carlton, The Four Seasons, Fairmont Raffles, Waldorf Astoria, Grand Hyatt, Intercontinental Hotels, Miraval Resorts, Sofitel, Omni and others.

Sales History

Based on records and information provided by the Company, sales for the three years prior to the ABC Proceeding were as follows:

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Products

The BedSok®

The core Andrew Morgan Collection product line was produced under the BedSok® name. The Bedsok® serves to decorate the box-spring and coordinate with the interior design of the guestroom. Bedsoks are easy to put on and take off and are virtually care-free. The Bedsok® is made of an exclusive ecofriendly, Polypropylene fiber called Ami-Vert© (Green-Friendly). The Ami-Vert© fiber used in their construction give the Bedsok® its highly recognizable and luxurious design as well as lasting wearability. The BedSok® has been well received by the hospitality industry due to its stain resistance, anti-microbial and bacteria resistance.

The ModSok®

The ModSok® functioned as the brand name behind the company’s line of accessories. The products included headboard and chair knitted slipcovers. The ModSok® products were designed with housekeeping in mind and the convenience of easy removal and the durability to be laundered in a commercial facility. Intrinsic to the design and technology, all items are anti-microbial, anti-bacterial, stain, bleach and oil resistant. They can easily be recycled as well.

Andrew Morgan Collection has established itself as a luxury brand in the world’s finest hotels, and in select high-end retailers. The company became profitable and very well positioned for future growth as the hospitality and home design industries continue to advance and display steady growth. Interested parties present themselves with multiple opportunities to continue to build the company.

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ASSETS

  • Trademarks: AndrewMorganCollection®, BedSok® and ModSok® (See Schedule)
  • Web Assets: MorganCollection.com and live websites (See Schedule)
  • Patents: Utility patent for BedSok® (See Schedule)
  • Copyrights: The company has designed hundres of proprietary designs and pattenrs including the copyrighted patterns listed below (See Schedule)

TRADEMARK SCHEDULE

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PATENT SCHEDULE

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COPYRIGHT SCHEDULE

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SALE PROCESS

Data Room: An online data room has been constructed where parties under confidentiality agreement can review assembled diligence information.

Bid Submission: Interested parties that wish to acquire some or all of the assets must submit bids no later than: November 24th, 2015.

Auction: If multiple bids are received, the Assignee may conduct an auction at a time and place to be determined.