When a company files Chapter 7 bankruptcy, it places its fate in the hands of the courts. That can result in its assets being sold off for parts, vendors accepting all or part of the company in lieu of payment, or, in rare cases, a sale of the brand to someone who wants to actually operate it.
“In a liquidation, the assets of the debtor, usually a corporation, are sold in piecemeal, or as a going concern in order to satisfy the debtor’s creditors,” according to Cornell Law School.
After a Chapter 7 bankruptcy filing, the court appoints a trustee who makes decisions to maximize return for creditors. The trustee can also consider other factors, such as workers keeping their jobs (although maximizing returns is the prime legal mandate). That can lead to sales after which a new owner continues to operate the brand, or a successor entity.
Under the Code, a trustee administers the liquidation by ‘marshalling all available property, reducing it to money, distributing it to creditors, and closing up the estate.’ The sale of the debtor’s assets creates proceeds that are divided among interest holders in the debtor. The division of proceeds is made according to the hierarchy of the claimants’ rights,” Cornell Law School continued.
Now, some of the assets owned by SHR Capital Partners, LLC and GOGO Tech II, LLC, the parent company of a number of wellness and supplement brands, will be auctioned off. That could lead to those brands continuing to operate, rather than being sold off for parts and disappearing.
Auction Advisors holding Chapter 7 auction of 3 e-commerce brands
Auction Advisors has been hired to conduct a Chapter 7 bankruptcy auction of the digital assets, intellectual property, and related goodwill associated with three established consumer e-commerce brands: Body Merry, BRI Nutrition, and Refresh Filters.
- Body Merry sells skin care and beauty products, including serums, moisturizers, creams, gels, and toners.
- BRI Nutrition sells dietary supplements, including vitamins, minerals, and other nutritional products.
- Refresh Filters sells replacement refrigerator water and air filters for major appliance brands.
Body Merry and BRI Nutrition products can be found on Amazon, while Refresh Filters products show up on various industry sites.
The auction will be held via Zoom on Sept. 24, 2026, at 11 a.m. Prospective bidders must complete registration and submit the required $10,000 deposit by Sept. 21, 2026, at 11 a.m.
The assets are being offered in connection with the Chapter 7 bankruptcy cases of SHR Capital Partners, LLC and GOGO Tech II, LLC, pending in the United States Bankruptcy Court for the District of Delaware.
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SHR Capital Partners, LLC and GOGO Tech II, LLC own a number of other brands that are not being included in the sale.
It appears that the Chapter 7 process began after Key Bank sued SHR Capital Partners due to it not meeting the terms of its loan agreement, according to court filings.
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The brands are being sold as going concerns
“This is an interesting opportunity because a buyer is not starting with a blank sheet of paper,” Auction Advisors Joshua Olshin said in a press release.
He believes that the right operator is essentially purchasing a ready-made business.
“These businesses were built around recognizable consumer categories with existing brand identities, digital content and customer-related assets. For the right strategic buyer or entrepreneur, acquiring an existing platform can provide a meaningful head start compared with developing a new brand from the ground up,” he added.
Auction Advisors expects that the offering may be of interest to existing e-commerce operators, consumer-product companies, private-label manufacturers, brand aggregators, strategic buyers, and entrepreneurs seeking to expand into the beauty, wellness, or home-products markets.
“A bankruptcy sale can create opportunities” Olshin added. “Our role at Auction Advisors is to create a competitive and transparent sale process on behalf of the Chapter 7 Trustee, broadly expose the opportunity to the marketplace and make sure qualified buyers have the information they need to evaluate and participate in the auction.”
A sale via auction can help establish fair market value and reduce the risk of later challenges, according to the Cowles Thompson law firm.
“There is a reason why a buyer of substantially all of a seller’s assets may want to pursue a sale via the buyer filing bankruptcy, through a bankruptcy auction. By obtaining a court order approving a sale via a bankruptcy auction, a finding of fair market value can be obtained. Such a finding can preclude a subsequent clawback by creditors and/or rescission of the sale,” the law firm shared.
SHR Capital Partners, LLC and GOGO Tech II, LLC Chapter 7 timeline
- SHR Capital Partners, LLC filed for Chapter 7 bankruptcy on April 5, 2024, in the U.S. Bankruptcy Court for the District of Delaware. The case is No. 24-10716 (JKS), PacerMonitor confirmed.
- GOGO Tech II, LLC filed for Chapter 7 bankruptcy on April 5, 2024, in the U.S. Bankruptcy Court for the District of Delaware. The case is No. 24-10717 (JKS), according to PacerMonitor.
- SHR Capital Partners was an e-commerce business that operated through GOGO Tech II and a portfolio of consumer brands sold online.
- At the time of the filing, SHR Capital Partners showed $1 to 10 million in assets and $10 to 50 million in liabilities, National Law Review noted.
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