Peach Video Master Auction Rescheduled for Friday
The auction, which includes all rights and licenses related to the masters, originally was scheduled for this afternoon but was delayed.
"To accommodate certain bidders’ schedules, the auction was moved to this Friday," attorney Lei Lei Wang Ekvall told XBIZ.
The masters, totaling 200, will be put up for bid in a telephonic conference that is expected to net more than $16,000, which is several thousands of dollars higher than a previous bid placed by Red Dragon Holdings, whose CEO is Dewi James.
Peach Entertainment's trustee said that there were numerous inquiries over the masters and that it would be in the best interest to find additional bidders, including a back-up bidder — all of whom must submit an initial bid of no less than $16,000 for Peach's softcore masters.
Incremental bids, according to the trustee, must be $500 higher than the previous bid.
In December, a bankruptcy judge approved the sale of Peach Entertainment Network’s DVD inventory. About 200,000 Peach DVDs were sold to Red Tooth Services for $20,239. Red Tooth is owned by Robbie Conley, a former Peach employee.
Van Nuys, Calif.-based Peach, which filed for Chapter 7 in late September, operated Peach DVD, PeachDVD.com, Red Static, Late Night and Red Dragon Releasing. Its CEO is David James.
Peach, according to the Chapter 7 filing, was seeing dwindling DVD sales, which amounted to only $290,000 this year, after banner years in 2007 and 2008, when Peach saw revenue climb to $2.4 million and $1.8 million, respectively.
In the Chapter 7 filing, Peach said that it was $1.8 million in debt and had $466,000 worth of assets, including video masters worth $114,000 and $203,000 of DVD inventory.
Its largest creditor is David James, who stated he lent the company more than $1.7 million in recent years.
Other creditors include Ingram Entertainment, L&M Optical Disc West, Orbitland Interactive and CAV Distribution Corp., among others.
The company was co-founded by Jim Monroe and James, who helped Steven Hirsch launch Vivid in 1984. Today, James continues as a Vivid co-CEO.
Potential bidders should email attorney Wang Ekvall at email@example.com or reach her by phone at (714) 966-1000.