Bankruptcy Judge OKs Sale of 200,000 Peach DVDs
With the decision, about 200,000 Peach DVDs will be sold to Red Tooth Services for $20,239. Red Tooth is owned by Robbie Conley, a former Peach employee.
Peach’s remaining assets include its brand, 200 master videos and office furniture.
According to Ostrin Auctioneers and court filings, Red Dragon Holdings has offered $12,000 to purchase those assets but the bankruptcy judge has yet to approve the sale. Red Dragon’s CEO is Dewi James.
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.