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Pirch, Inc., Case No. 24-01376-CL7

NOTICE: TOWN HALL MARCH 12, 2025 AT 11:00 AM, MEETING ID: 737 172 7291, PASSWORD 464908

NO SIGN UP REQUIRED

GENERAL INFORMATION

United States Bankruptcy Court, Southern District of California (the “Bankruptcy Court”), Case No. 24-01376-CL7.

On April 19, 2024, Pirch, Inc. (“Pirch”) filed for chapter 7 bankruptcy protection in the Bankruptcy Court, Leslie T. Gladstone (the “Trustee”) has been appointed chapter 7 trustee. The Trustee is a court appointed officer and had no involvement with Pirch prior to the bankruptcy filing. The goal of the Trustee is to maximize assets for the benefit of the creditors of Pirch.

This website is to explain the bankruptcy process, to keep you updated, and to provide information.

RECENTLY HEARD AND UPCOMING MATTERS

1. TRUSTEE'S MOTION TO SELL PIRCH INVENTORY was granted on June 28, 2024. A copy of the Motion to Sell Pirch inventory is below.

Motion re Sale of Personal Property (Motion re Sale of Personal Property.pdf)

Order re Sale of Personal Property (Order re Sale of Personal Property.pdf)

2. TRUSTEE’S MOTION TO (1) APPROVE AUCTION PROCEDURES; AND (2) SELL LEASEHOLD INTERESTS AND RELATED PERSONAL PROPERTY PURSUANT TO 11 U.S.C. SECTION 363, FREE AND CLEAR OF LIENS, CLAIMS, AND INTERESTS was granted - Monday July 1, 2024, at 10:30 am, A copy of Motion to (1) Approve Auction Procedures; and (2) Sell Leasehold Interests and Related Personal Property Pursuant to 11 U.S.C. Section 363, Free and Clear of Liens, Claims, and Interests for the July 1, 2024 hearing are below. This motion allowed the Trustee to conduct an auction to sell the three showroom locations of Costa Mesa, Mission Viejo and Rancho Mirage. The winning bid was to Ferguson Enterprises, LLC for a total of $9.3 million, plus cure amounts for past due rent owed. There are no liens on the proceeds of these sales.

Motion to Sell Leasehold Interests (Motion to Sell Leasehold Interests.pdf)

Order on Motion to Sell Leasehold Interests (Order on Motion to Sell Leasehold Interests.pdf)

3. TRUSTEE'S MOTION TO SELL VISTA WAREHOUSE - this motion was granted on October 21, 2024, and entry of the order is pending.  A copy of the motion is below.

Motion to Sell and Assign Vista Leasehold Interests (Motion to Sell and Assign Vista Leasehold Interests.pdf)

This sale was made to Ferguson for a purchase price of $300,000.00, plus cure of administrative rent. This sale also allowed the Estate to recover a $600,000.00 security deposit made by Pirch to the Vista landlord.

4. CATTERTON CARVE-OUT STIPULATION

The Trustee has entered into a stipulation to resolve the $80 million lien asserted by CP Fixtures Holding, LLC, an affiliate of Catterton. The carve-out stipulation provides for $100,000.00 of any proceeds payable on account of the CP lien to be paid to counsel for the Creditor's Committee, for payment of compensation incurred representing the Committee. The balance of any funds due to Catterton is preserved for the estate. This settlement allowed for the Creditor's Committee attorney’s fees to be paid and for release of the CP lien against the personal property assets sold at the auctions. The hearing on approval is set for November 18, 2024, and there is no timely opposition filed. A copy of the motion is below:

Motion for Order Approving Compromise and Carve-Out (Motion for Order Approving Compromise and Carve-Out.pdf)

5. LITIGATION, LEASES

The Trustee has addressed many other issues in this case including approximately 44 state court matters, termination and litigation re multiple leases, analysis as to secured claims, accounts receivable, filing of a claim in the Visa/Mastercard Class Action and investigation/analysis as to potential avoidance actions and other potential recovery actions. Many of these matters are ongoing and may take some time to complete. The Trustee is also reviewing tax filings and outstanding tax liabilities to determine the accuracy of amounts alleged as owed. The Trustee will also need to review over 881 claims that have been filed in this case. Until these events are completed, it is not possible to predict the amount of recovery to any particular creditor. We appreciate your patience.

TOWN HALLS

The Trustee conducted Town Hall Meetings on July 2, 2024 at 12:00 pm, July 15, 2024 at 12:00 pm, September 12, 2024, November 8, 2024 at 11:00, and December 5, 2024 at 11:00 via Zoom wherein the status of the case was discussed.  The Trustee will conduct a further Town Hall Meeting on March 12, 2025, at 11:00 am via Zoom. Meeting ID: 737 172 7291, Password 464908. No sign up required.

SUB-ZERO CUSTOMERS

Sub-Zero Customers. Unfortunately, Sub-Zero insisted upon and obtained court approval to take all of the Sub-Zero, Wolf and Cove inventory without paying anything to the estate or customers. However, Sub-Zero is also responsible for responding to inquiries, complaints and/or ownership claims regarding any Sub-Zero, Wolf or Cove inventory removed from the Distribution Centers by Sub-Zero, and Sub-Zero’s customer service center number is 1-800-222-7820.

CLAIMS BAR DATE

The claims bar date passed on August 29, 2024, for general unsecured creditors.  If you did not receive notice or feel otherwise that you are entitled to file a late claim, please follow the below procedure:

A POC may be filed electronically on the Bankruptcy Court's website using this Electronic Proof of Claim (ePOC) program Electronic Proof of Claim (ePOC) | Southern District of California | United States Bankruptcy Court (uscourts.gov). A Form 410, Proof of Claim, may also be filed on paper. The form is available at the Bankruptcy Clerk's Office or on the Court's website at Electronic Proof of Claim (ePOC) | Southern District of California | United States Bankruptcy Court (uscourts.gov); https://www.casb.uscourts.gov/electronic-proof-claim-epoc.  POC forms should be mailed to the address below. To receive acknowledgement of your filing, include a stamped, self-addressed envelope and a copy of your POC. There is no fee for filing the POC.

United States Bankruptcy Court
325 West F Street
San Diego, CA 92101-6991

Creditors filing a POC for wages, salaries, and compensation must provide the Trustee a complete Social Security Number which is required by the Trustee for the processing of payroll reports. Do not file your Social Security Number with the Bankruptcy Court because the claims register is public information. Instead, please just send a copy of your POC with your full social security number added to the Trustee at the following address:

Leslie T. Gladstone
5656 La Jolla Blvd.
La Jolla, CA 92037

Any customer, employee or other creditor who has filed a POC already need not file another POC after the Court sends out the claim form.

A person who files a fraudulent claim could be fined up to $500,000, imprisoned for up to 5 years, or both. 18 U.S.C. Sections 152, 157, and 3571.

THE DEADLINE TO FILE A NON-PRIORITY POC WAS AUGUST 29, 2024.

TRUSTEE’S AUCTION INFORMATION

As stated above, the Trustee conducted auctions of the inventory on hand, pursuant to Court approval obtained on June 28, 2024.

The Trustee’s auctioneer, Onyx Asset Advisors, conducted auctions as follows:

August 6, 2024, at 12740 E. Florence Ave., Santa Fe Springs, CA 90670.  

August 8, 2024, at 77-588 El Duna Court, Ste. E, Palm Desert, CA 92111.

August 13, 2024 and August 14, 2024, at 1445 Engineer Street, Vista, CA 92081.  

August 15, 2024 and August 16, 2024, at 1322 Rocky Point Dr., Unit A, Oceanside, CA 92056.  

The Reports of Sale for the items the Trustee was permitted to sell have been filed with the Court.  Copies of these documents are also available below

Trustee's Report of Sale Trustee's Report of Sale.pdf

The Trustee received total gross proceeds from the auctions of $5,786,769.29 (this does not include any Sub-Zero, Wolf or Cove products, which were picked up by Sub-Zero). The Trustee is currently analyzing the funds necessary to pay to various secured creditors from these funds (pursuant to carve-out stipulations approved by the Court). The balance of funds will be held by the Estate pending claims review.

BANKRUPTCY DOCUMENTS

Documents filed in this case are available at the Office of the Clerk at the United States Bankruptcy Court for the Southern District of California, located at 325 West F Street, San Diego, California 92101. The Bankruptcy Court’s telephone number is (619) 557-5620. The complete docket of the bankruptcy case is also available electronically for a fee through the United States Bankruptcy Court, Southern District of California Case Management/Electronic Case Files system (www.casb.uscourts.gov). If you need assistance in obtaining copies of documents filed in this case, please call the Bankruptcy Court at the above number.

If you want to receive every document filed in this case, you will need to file a Request for Special Notice with the Bankruptcy Court. The Request for Special Notice will need to state that you would like to request notice of all matters that come before the Court concerning the Debtor be mailed to you and provide the address for such notices.

INCORRECT ADDRESS

If your address is incorrect, please file a Notice of Change of Address with the Bankruptcy Court. The form is available at the Bankruptcy Clerk's Office or on the Court's website at https://www.casb.uscourts.gov/sites/casb/files/documents/forms/CSD1547.pdf.  The Notice of Change of Address should be mailed to the address below. To receive acknowledgement of your filing, include a stamped, self-addressed envelope and a copy of your Notice of Change of Address. There is no fee for filing the Notice of Change of Address.

United States Bankruptcy Court
325 West F Street
San Diego, CA 92101-6991

UPDATES TO WEBSITE/FURTHER INFORMATION

We will continue to update you as matters occur in this case. If there are additional questions that you still have after reading this website, you may call the Trustee Administrator Candi Collins at (858) 247-0750 or the Committee representatives below. Please understand that there are many creditors of Pirch, Inc. and so it may take a little time to return your call. We are working very hard to provide all relevant information to you as soon as we can.

CREDITORS COMMITTEE – The Court approved the formation of the Creditors Committee as follows:

1. Date of Election: June 5, 2024.

2. Interim Chairperson:  Matt Silverman

3. Committee contact information:

     a. Email address: [email protected]

4. Creditor Committee Website:

     https://pirchbankruptcy.dinsmore.com


5. Counsel for the Creditors' Committee:

     a. Christopher Celentino

          Telephone No. 619-400-0519

          Email address: [email protected]