Bluestem’s $250 Million Bankruptcy Sale Gets Court Approval

E-commerce retailer Bluestem Brands Inc. received approval to sell the company to a group of the company’s lenders in exchange for the forgiveness of $250 million worth of debt and the assumption of other liabilities.

Judge Mary Walrath approved Bluestem’s sale to BLST Acquisition Co. LLC—an entity controlled by investment firm Cerberus and a group of term loan lenders—during an uncontested telephonic hearing Tuesday at the U.S. Bankruptcy Court for the District of Delaware.

The final sale price and agreement caps a Chapter 11 bidding process that kicked off when Bluestem filed for bankruptcy in March with a leading bid ...