Shareholders of the financially troubled Idee Department Store (衣蝶百貨) chain yesterday approved a reduction of the company's minimum bidding price from NT$1.8 billion (US$56.7 million) to NT$705 million, paving the way for an early sale.
"Our biggest hope is to facilitate the transfer of Idee's ownership to a new buyer soon to maintain its normal operations," said Kris Mao (
"The new floor price was set based on the estimated residual market value of Idee, as appraised by our accountants," Idee public relations manager Rebecca Ouyang (歐陽翎) said by telephone.
The new minimum matches the offer by the only bidder, Taipei-based Shinkong Synthetic Fibers Corp (
Shinkong Synthetic refused to say yesterday if it had retained an interest in buying the stores.
Mega International Commercial Bank (兆豐國際商銀), Idee's largest creditor, filed for a court order on Nov. 6 to impound Idee's brand name, which compounded Idee's difficulties in transferring ownership after parent company China Rebar Co (中國力霸) went bankrupt.
But Mega International was happy to learn of the shareholders' decision yesterday.
"We hope that Idee can soon strike a deal [with the new floor price]," Mega International executive vice president Wen Chi-zon (
Mega International's legal move prompted some 300 Idee employees to stage an hour-long protest on Jan. 10 over the safeguarding of their jobs. The protest forced Idee's two branches in Taipei to close down from 11am to 2pm on that day.
Mega International yesterday said it would cancel the impounding of Idee's brand name once Idee completes the transfer of ownership and reaches a final agreement with the bank on China Rebar's plan to pay off debt, Wen said.
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