Contour shocked its employees by closing the doors to it’s office without warning 5 weeks ago. Contour has now been placed into the hands of a court receiver who is currently trying to sell the company for $7.5 million, which is how much Contour owes it’s creditors.
It appears that the stiff competition from the heavily funded GoPro proved too much for Contour Inc.
Contour once was one of the largest companies in the USA bringing in $30 million in annual revenue. Now they are in debt to creditors Montlake Captial for $4.2 million and Comerica for $3.2 million.
A few potential buyers have been found, but negotiating the deal has been a disaster as all of Contour’s management has resigned.
“In the absence of a board of directors and management there is no one in place at Contour to protect and preserve the assets or to pursue the sale of the business and assets that was being pursued prior to the resignation of the board and management.” wrote lawyers for the creditors, Comerica Bank and Montlake Capital, in an emergency petition Aug. 26 seeking to place the company in receivership
After closing their doors and having all of their management resign, shock waves were felt in the industry and retailers starting dumping Contour products as fast as they could.
Now, Contour Inc. is up for sale to anyone who will buy it:
Contour, Inc. Enters into Receivership to Preserve Value and to Complete the Sale of All Business Assets
Seattle, WA – Contour, Inc., formerly a leading provider of POV cameras and accessories, has entered into receivership under approval by the Superior Court of Washington for King County. Inverness Group, LLC, by and through its Managing Partner, John Davidson, has been appointed as Receiver. D.A. Davidson & Co has been engaged by the Receiver to help enable the sale of Contour assets through a competitive bid process within sale procedures to be established in the case. Nathan Pund, Managing Director at D.A. Davidson, commented, “We look forward to facilitating a successful transaction in the best interests of Contour’s creditors and potentially enabling a future for the Contour brand.”
Founded in 2004, Contour grew to be one of the largest companies in its field with almost $30 million in annual revenue.
Contour abruptly shut its doors on August 2, 2013 after protracted negotiations with investors failed to produce a viable funding solution. Remaining assets at the Company include an IP portfolio, customer lists and contracts, supplier contracts, accounts receivable and inventories, trademarks, and other assets. The assets will be sold “as is” free and clear of all liens and encumbrances, and the sale will be subject to an agreed Asset Purchase Agreement and final approval by the Court.
D.A. Davidson is currently accepting solicitations from interested parties, with a final competitive bid process at an auction tentatively set for early October. Interested parties should contact Nathan Pund at email@example.com or (206) 903–8693.