By Stephen Nakrosis

IMedia Brands on Friday said it reached a deal to sell substantially all of its assets to an affiliate of RNN National Media Group.

The asset and equity purchase deal will see RNN's affiliate acquire assets including ShopHQ Networks, J.W. Hulme, and Christopher & Banks for about $50 million, plus the assumption of certain liabilities, contracts and ongoing expenses. Operations will continue uninterrupted, iMedia said.

IMedia said the deal will be consummated through its chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The court, in connection with the planned deal, approved $15 million in new debtor-in-possession financing from some of iMedia's existing secured lenders and RNN, the company said.

IMedia filed for chapter 11 bankruptcy last month.

The news boosted iMedia's stock in the after-hours market. At 4:22 p.m. ET, shares were trading nearly 40% higher at 15 cents. The stock closed the day's regular session with a 19% loss.

The deal is expected to close in August, the companies said.

Privately owned RNN said it owns the largest group of independent broadcast stations in the U.S.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

July 07, 2023 16:30 ET (20:30 GMT)

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