In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the decline of Ronco.
Article Link: https://nypost.com/2018/11/23/inventel-showing-interest-in-buying-bankrupt-ronco/
Summary
Ronco, known for its infomercial products like the Showtime Rotisserie oven, is on the verge of being acquired by InvenTel after filing for Chapter 11 bankruptcy. InvenTel, a company that markets various products through As Seen on TV stores, has offered $1.4 million for Ronco’s assets, including its name, intellectual property, and inventory. Ron Popeil, the founder of Ronco, believes the assets are overvalued, suggesting a price closer to $50,000, especially since the patent for the key product, the rotisserie oven, is expiring. Ronco’s decline began with unsuccessful attempts to raise funds through a public offering, leading to its bankruptcy with assets and liabilities estimated between $1 million and $10 million. Adam Stein-Sapir, a distressed-asset expert, commented on the significant investments that have been made in the Ronco name.
- InvenTel has offered $1.4 million to purchase Ronco’s assets during its bankruptcy liquidation.
- Ron Popeil, Ronco’s founder, believes the assets are worth much less due to the expiring patent of the rotisserie oven.
- Ronco’s bankruptcy followed a failed attempt to raise $30 million in a public offering, with Adam Stein-Sapir noting the substantial investments in the brand.
Q&A
What are the implications of a company like Ronco filing for bankruptcy?
When a company files for bankruptcy, it affects its ability to continue operations, impacts creditors and investors, and can lead to the liquidation of assets. Creditors may face difficulties in recovering their investments, and the company’s brand value may diminish. For more information on the implications of bankruptcy, visit Pioneer Funding LLC’s guide on what to do when a customer files for bankruptcy.
How does the expiration of a patent impact the valuation of a bankrupt company’s assets?
The expiration of a patent can significantly reduce the value of a bankrupt company’s assets because it removes the exclusive rights to produce or sell the patented product. This can lead to increased competition and reduced revenue potential, making the assets less attractive to potential buyers.
What role do distressed-asset experts like Adam Stein-Sapir play in bankruptcy cases?
Distressed-asset experts like Adam Stein-Sapir analyze the value of a bankrupt company’s assets and provide insights into the potential recovery for creditors. They may also advise on the sale of bankruptcy claims and the risks involved. For more details on selling bankruptcy claims, you can refer to Pioneer Funding LLC’s guide on selling bankruptcy claims.
