iMedia Brands Seals $55M Asset Transfer to IV Media Following Bankruptcy Court Approval

On August 14, 2023, the U.S. Bankruptcy Court for the District of Delaware gave the green light to a major restructuring: iMedia Brands finalized the transfer of substantially all its operating assets to IV Media, LLC—a subsidiary of Innovation Ventures, LLC, the company behind the 5-hour ENERGY® brand. The transaction, valued at approximately $55 million, marks the conclusion of the Chapter 11 bankruptcy process initiated by the struggling media company.

What Changed Hands

Under this Asset and Equity Purchase Agreement, IV Media acquired iMedia Brands’ complete portfolio on a going-concern basis. The portfolio includes multiple revenue-generating divisions: ShopHQ Networks (the company’s flagship with three decades of broadcast history), 1-2-3.tv, iMDS, J.W. Hulme, and Christopher & Banks. In addition to the asset purchase, IV Media assumed certain liabilities, contracts, and ongoing operational expenses, ensuring continuity of services.

The Auction Process and Selection

Following a court-sanctioned auction held on August 10, 2023, IV Media emerged as the winning bidder. The selection was made in consultation with lenders and the Official Committee of Unsecured Creditors, ensuring a balanced outcome across stakeholder interests. The transaction proceeded under Section 363 of the U.S. Bankruptcy Code, the legal framework governing asset sales during Chapter 11 proceedings.

Leadership Perspectives

James Alt, Chief Transformation Officer at iMedia Brands, expressed optimism about the transition: “Under new ownership, both companies will be well positioned to grow and achieve great success together well into the future. With IV Media’s partnership, iMedia will continue delivering customers the diverse range of brands they desire through captivating content.”

Vince Bodiford, Head of Communications for Innovation Ventures and 5-hour ENERGY®, reciprocated the positive sentiment: “We are pleased with the outcome and the process and are looking forward to working closely with iMedia going forward.”

Operational Continuity Assured

One of the key assurances from both parties is that iMedia Brands’ operations will continue without interruption. ShopHQ, in particular, maintains its national distribution reaching over 90 million U.S. households through cable, satellite, and broadcast partnerships, plus multi-platform presence via Roku, Apple TV, Amazon Fire, and Samsung Smart TVs.

Legal and Advisory Support

The transaction was facilitated by a robust advisory team: Ropes & Gray LLP and Pachulski Stang Ziehl & Jones LLP provided legal counsel to iMedia Brands, while Lincoln International LLC served as investment banker, Huron Consulting Group handled financial advisory duties, and C Street Advisory Group managed strategy and communications. On the IV Media side, Greenberg Traurig, LLP and Oakland Law Group, PLLC provided legal representation.

Stakeholders with inquiries can reach Stretto, the claims agent, at (855) 794–3801 (U.S.) or (949) 340–0398 (international), or via email at iMediaInquiries@stretto.com for further details on the Chapter 11 process.