NOTICE OF SALE of the assets of Apollo Video

Transcription

1 California Receivership Services PO Box 5128 Oroville, California Patrick Bulmer Tel: (530) Court Appointed Receiver Fax: (800) NOTICE OF SALE of the assets of Dear Prospective Bidder: By order of the Superior Court of the State of California, County of San Francisco, in the matter of Fernandes v. Canty, Case Number FDI , the assets and inventory of, an adult video and novelty establishment located at 487 Broadway, San Francisco, California, have been ordered to be offered for sale by Patrick Bulmer, Court Appointed Receiver. You are invited to submit a bid for the purchase of these assets, which include all inventory and business equipment as shown in the provided summary inventory report. You may bid on the entire business as a going concern or on individual assets. You may submit multiple bids with different terms. A complete bid package, including interior photos and additional documentation, is available for your review at: Bids can be sent via facsimile to (800) or to pbulmer@calreceiver.com and must be received by 5:00 p.m. on Tuesday, June 23, No deposit is required with the bid. However, subject to terms and conditions contained in the bid package and confirmation of the sale by the Court, your bid will be considered a binding contract to purchase. A preview tour of the business is scheduled for Saturday, June 20, 2009 at 1:00 p.m. where the assets and inventory and the business premises can be viewed THIS WILL BE THE ONLY OPPORTUNITY TO PREVIEW THE BUSINESS ASSETS AND INVENTORY Please contact Patrick Bulmer by at pbulmer@calreceiver.com (preferred) or by telephone at (530) if you require further information or would like to request a bid package via facsimile.

2 Bid Sheet for Business Name: Phone: Contact Name: Fax: Mailing Address: Address (please provide if available): Please check all that apply. I am interested in purchasing the entire business and its assets as a going concern. I am only interested in purchasing certain assets as indicated below. My offer is subject to renewal and extension of the lease for the current business location under favorable terms to be negotiated with the landlord. I understand that the current rental rate for the business location is $4, per month. My offer includes assignment of the current lease only. I do not make this offer subject to a new lease with the landlord. I am not interested in submitting a bid at this time, but please contact me if any general business assets or inventory will be sold individually in the future. ASSETS You may at your option, enter an itemized bid for each asset or enter only a total amount for all checked assets. You may also submit multiple bids. A bid for the entire business will include miscellaneous supplies, equipment, inventory and general business assets used in daily operations. General Business Assets Includes miscellaneous supplies, fixtures, general equipment, etc. (as stated in provided inventory report) Inventory DVD Videos (as stated in provided inventory report) Inventory Novelty Items (as stated in provided inventory report) Videotel System 124 Channel System w/ 13 Booth Units (12 working) Individual Assets or Other Terms (enter total and itemize in attachment) Total Bid: I will not be able to submit payment in full within five days after notice of confirmation of my bid by the court. I request payment of a deposit in the amount of $ within five days after notice of acceptance of my bid and agree to pay the balance within days after notice of acceptance. I have reviewed the bid package for this sale, including the Disclosure of Terms & Conditions. I understand that if accepted and confirmed by the Court, my bid will constitute a binding contract to purchase. Authorized Signature Title Date

3 California Receivership Services PO Box 5128 Oroville, California Patrick Bulmer Tel: (530) Court Appointed Receiver Fax: (800) Disclosure of Terms and Conditions for sale of the assets of All bids and the sale are subject to approval and confirmation by the Court. The Receiver and the Court reserve all rights to cancel or disqualify bids for any reason, to cancel the sale, to accept bids subject to further terms and conditions, or to re-offer the assets for sale at a later date and/or by other means. The successful bidder shall make said payment within five business days of confirmation by the Court unless another time is indicated in the bid and accepted by the Court. All payments must be made in cash or certified funds. All assets, including but not limited to inventory, equipment, computerized systems and software, and expendables are provided as-is with no warranty from the Receiver or the Court. Videotel System: Hardware is fully owned and being sold as an asset of the business. A monthly software licensing fee of $ must be paid to Videotel to continue use and operation of system. There are 13 booths at the business, only 12 are in working order. The problems with the non-working machine are unknown, but presumed to be a minor parts issue. The inventory shown on the summary inventory listing provided in the bid package as Exhibit A is believed to be true and correct as of the date it was taken. However, the total number of items shown in the inventory may differ from the actual number of items received in the sale due to interim sales, accidental miscounts, return of consigned merchandise or other factors. It is recommended that serious bidders attend the preview tour of the business on Saturday, June 20, 2009 to review the actual inventory being offered for sale, and to receive any updates as to the total availability of inventory and assets. All representations regarding income, expenses, inventory and other factors relating to the value of the assets are provided in good faith by Receiver from sources believed to be accurate. Neither Receiver nor the Court make any guarantees as to the accuracy of said representations and prospective bidders should undertake their own independent investigation to ascertain the truth of any such representations. A copy of the Internal Revenue Service Form 1040 Schedule C for tax year 2007 relating to the subject business shows Gross Income (Line 7) of $389,339.00, Total Expenses (Line 28) of $119,871.00, and Net Profit of $269,

4 June 15, 2009 Page 2 of 2 Receiver does not have reliable or complete accounting records for Year An income and expense report for January 1, 2009 through April 30, 2009 is attached hereto as Exhibit B. It was compiled from an active QuickBooks accounting file and is believed to be accurate. Controversial items related to owner draw and personal expenses have been deleted from the Expense totals. The current operative lease for the business premises expires on November 30, The owner / landlord has represented to Receiver that it will negotiate a new lease with a prospective bidder in good faith, subject to reasonable approval. Unless otherwise indicated on the bid sheet, all bids for the business as a going concern will be accepted subject to approval by the owner / landlord of mutually acceptable lease terms. Certain documents have excluded from the bid package due to privacy concerns, including the operative lease for the business premises, tax documents and detailed accounting information (to the extent that it is available). These documents may be available for review by serious bidders upon request to Receiver and approval by attorneys for the interested parties. You may bid on the entire business as a going concern or on individual assets. You may submit multiple bids with different terms. Signify different bids by letter, such as A, B, C, etc. printed on the top right corner of your bid sheet. Purchase will include marketable title free and clear of liens and debt unless otherwise indicated or negotiated. No deposit is required with the bid. However, subject to terms and conditions contained in the bid package and confirmation of the sale by the Court, your bid will be considered a binding contract to purchase. Bids should be submitted on the standard Bid Sheet provided in the bid package. You may attach additional pages such as a cover letter, statement of contingencies, or other information.

5 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO Patrick Bulmer, Receiver PO Box 5128 Oroville, CA Ph: (530) Fx: (800) Summary Inventory of Business Personal Property May 28, 2009 Qty DVD Movies 5037 DVD's - New, Behind Front Counter 1536 DVD's - New, In Cases - Back Stock Description Novelty Items 111 Novelty Items - <$20 Retail Price 226 Novelty Items - $20-$40 Retail Price 103 Novelty Items - $40-$60 Retail Price 40 Novelty Items - $60-$80 Retail Price 17 Novelty Items - $80-$100 Retail Price 10 Novelty Items - $100-$120 Retail Price 5 Novelty Items - $120-$150 Retail Price 8 Novelty Items - >$150 Retail Price 72 Novelty Items - "B" Stock 39 Magazines - <$10 Retail Price 50 Magazines - $10-$15 Retail Price 12 Magazines - $15-$20 Retail Price 31 Magazines - >$20 Retail Prices 54 Clothing Items on Rack 101 Fluids / Supplies, <$10 18 Fluids / Supplies, $ Fluids / Supplies, $ $ Fluids / Supplies, $ Fluids / Supplies, $ Fluids / Supplies, $ $ Fluids / Supplies, $ Fluids / Supplies, $ Fluids / Supplies, $ $ Fluids / Supplies, $ $ Fluids / Supplies, $ Fluids / Supplies, $ Fluids / Supplies, $49.99 Video Booth Equipment 1 VideoTel 124-Channel Video Rack with Streaming Servers, Networking 1 VideoTel Video Preview Player / Controller 13 VideoTel Bill-Operated Video Display Units Miscellaneous Equipment 1 Brother MFC-440CN All-In-One Printer / Copier / Fax 1 Shrink Wrap Machine 1 3-Camera Video Surveillance System w/ DVD Recorder 1 Lot, Miscellaneous Office Equipment and Supplies 1 Lot, Miscellaneous Display Racks 1 Sentry Safe (Office) 1 Sisco Safe (Belongs to Fernandes, No Key / Combo Delivered) 1 Phillips 20" TV 1 AccuBanker AB1000 Bill Counter Fernandes v. Canty Summary Inventory of Business Personal Property Exhibit A FDI

6 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO Patrick Bulmer, Receiver PO Box 5128 Oroville, CA Ph: (530) Fx: (800) Income and Expenses 1/1/2009-4/30/2009 Ordinary Income / Expense Income - Sales $136, Total Income: $136, Cost of Goods Sold $25, Total COGS: $25, Gross Profit: $110, Expenses Equipment Rental / Licensing (Credit Card, Videotel) $6, Office Expenses $1, Payroll Expenses (estimate $10,000 / month) $39, Rent - Business Premises $16, Repairs / Maintenance $60.00 Taxes and Licenses $8, Utilities $4, Total Expenses: $75, Net Ordinary Income: $34, Fernandes v. Canty Income and Expenses - 01/01/ /30/2009 Exhibit B FDI