Plum TV, the upscale cable channel that serves up light entertainment geared toward tourist and resort markets, announced on Jan. 3 that the company had filed for Chapter 11 protection in federal bankruptcy court for the Southern District of New York.
The beleaguered company, which is based in Miami but operates a station on the South Fork and in seven other high-end markets in the United States, laid off 50 of its 85 employees across the country in September, hoping to avoid accumulating further debt while preserving the brand.
“While a filing is a difficult choice, after a tough time for the company, it is the right choice,” Tom Scott, a founder of Nantucket Nectars and Plum TV’s founder and chairman, said in a release.
In conjunction with the Chapter 11 filing, the company has entered an asset purchase agreement with an investor group led by Terry Mackin, the president of Foresight Lab in Greenwich, Conn., and Bill Apfelbaum, the chairman of Media Ventures Group in New York City. The investors have agreed, under certain terms and conditions, to substantially buy Plum TV’s assets, as well as lend the company $1 million in debtor-in-possession financing, which will allow Plum TV to continue operations through the sale. Chapter 11 permits businesses to continue to operate while developing a plan to reorganize or sell its assets.
“We want to reassure our audiences and advertisers that Plum TV remains in business and will continue to provide our daily programming throughout this process,” Mr. Scott said. “As longtime visionary senior media executives, Terry and Bill have excellent track records and we believe the Plum TV brand will be well positioned when it emerges from the proposed asset sale.”
Scott Williams, the founder of a brand development agency, has been appointed chief restructuring officer.