The state’s largest jewelry manufacturer and retailer, Maui Divers Jewelry, has offered to buy bankrupt retailer Hilo Hattie for $1 million. Hilo Hattie filed bankruptcy last October and has suffered $7.5 million in losses since. A committee of unsecured creditors in the popular retailer’s Chapter 11 bankruptcy reorganization case accepted the company’s offer Tuesday, March 19. Honolulu-based Maui Divers operates concessions inside all of the state’s Hilo Hattie stores and is the biggest creditor on the committee. The U.S. Bankruptcy Court must approve the offer. If other buyers offer better bids, an auction could occur.
Under the deal’s terms, Maui Divers would rehire all or most of Hilo Hattie’s employees and local vendors, and situate a minimum of $2 million in working capital and negotiated leases at all seven Hilo Hattie locations in Hawai‘i. Maui Divers said they would preserve the Hilo Hattie name and expand the company if the deal goes through. The closing date is set for no later than Monday, June 22, depending on court approval—unless mutually agreed upon by both parties.