Second auction only finds buyers for physical assets.
Nobody wants The Income Store’s assets — at least at the prices asked.
The SEC alleges that The Income Store was a Ponzi scheme. The business developed revenue-generating sites for investors, but the SEC alleges that the owner was paying off old investors with new investor money.
Attempts to liquidate the company’s assets haven’t resulted in a notable sale yet.
First, they attempted to sell off all of the company’s sites, domains, and hard assets in one auction with a $2.5 million starting bid.
Although more than 60 potential acquirers inquired, none were willing to pay that much.
The receiver then divided the assets into 40 lots, with separate lots for the top revenue-generating websites, physical assets, trademarks, and multiple lots of domains. Only the physical assets sold despite 90 bidders registering overall. The other lots did not meet the reserves.
Now, the receiver is going to negotiate piecemeal to try to liquidate the intangible assets. It seems to me that with this many interested buyers, a no-reserve auction would be the fastest way to determine the value of the assets.
It will be interesting to see how much cash these assets will ultimately sell for.
Post link: The Income Store’s intangible assets are a tough sell
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