GGST's newest partner: Franco
By Staff -- Home Textiles Today, 10/3/2003 12:00:00 AM
New York — Franco Mfg. may emerge as the real winner of yesterday's Pillowtex auction, perhaps taking away some of the home textiles industry's best known brands.
GGST LLC, the original stalking horse bidder, emerged victorious last night after posting a $128 million offer — $72 million more than it originally agreed — for substantially all of Pillowtex's assets. In the end, it outbid another liquidation joint venture headed by PT Partners and The Peters Company by just $500,000.
But GGST, originally a consortium of four companies brought together for Pillowtex's asset liquidation, yesterday had a fifth member — Franco — brought to the table at the eleventh hour by the creditors' committee, explained committee attorney Mark Indelicato, a partner in Hahn & Hessen, New York. Franco was with GGST throughout the auction and in the closed-door caucuses to counter competitive bids, Indelicato said.
GGST was originally composed of Gordon Brothers Retail Partners, Gibbs International, SB Capital Group (including Schottenstein) and Tiger Capital Group.
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