Eden Prairie-based iMedia Brands to be sold for $50 million out of bankruptcy

Less than two weeks after filing for bankruptcy, iMedia Brands Inc. said it will sell its assets for about $50 million to New York-based RNN National Media Group.

IMedia — the parent company of shopping network ShopHQ, women's clothing retailer Christopher & Banks and leather goods brand J.W. Hulme Co. — filed for bankruptcy in late June after defaulting on a loan, leading the lender to sue the company. The company indicated it was in discussions with a potential buyer.

RNN will acquire all of iMedia's businesses, which also includes 1-2-3.tv and iMDS.

In a Monday morning press release announcing the deal, Eden Prairie-based iMedia said the deal "remains subject to higher or better offers" but is otherwise expected to close in August.

"RNN is the ideal partner to position iMedia for its next growth phase, and we look forward to being a part of RNN's suite of broadcast assets and providing our valued customers the assortment of brands they're looking for through engaging and informative content," said James Alt, chief transformation officer of iMedia, in a statement.

iMedia will continue to pay its employees, according to the news release: "iMedia has also received the Bankruptcy Court's approval of a number of customary motions to continue supporting its operations during the Chapter 11 cases, including the continued payment of employee wages and benefits and normal programming on its networks without interruption and other relief measures customary in Chapter 11 cases."

Richard French Jr., president and chief executive of RNN, is familiar with iMedia. In 2021, RNN and iMedia signed a three-year network affiliation agreement. RNN has stations in eight of the top-10 television markets, and its channels reach more than 20 million people.

French previously had invested in iMedia and joined the company's board of directors on Sept. 15 but had resigned effective Dec. 28. The SEC filing that announced his resignation gave no reason for the move.

"RNN is excited to acquire iMedia Brands, its assets and its talented staff," French said.

Mark Argento, a founding partner and analyst at Minneapolis investment bank Lake Street Capital Markets, said the sale was a positive outcome for iMedia.

"It's good they are buying the assets … to keep the business running versus shutting it down," Argento said.

iMedia, saddled with debt, was at risk for having its stock delisted.

For the fiscal year ending on Jan. 28, iMedia reported sales of $544.6 million and a net loss of $70 million.

The Minnesota company has undergone many name changes through the years. What was then ValueVision Media Inc. was renamed to Evine Live in 2014. Evine then became iMedia Brands in 2019.

Founded in 1990, iMedia always has run a distant third to QVC and HSN as television shopping networks.

iMedia acquired bankrupt retailer Christopher & Banks in 2021 and since has reopened a few of the retailer's stores.

iMedia's primary categories of goods sold are jewelry and watches; health, beauty and wellness; home and fashion and accessories.

Star Tribune staff writer Nicole Norfleet contributed to this report.