Destination Maternity Corp. (fka DESTQ)

[chemist72]

Well look at that. 30,000 shares bought at $.01-.012!

[chemist72]

UPDATE: Can now see bid and ask prices at 2 brokerages.

While the 2 ASK prices quoted are identical, the 2 BID prices quoted are NOT the same. Will see if this changes in the future.

[chemist72]

One trade posted today so far.

I can see NO posted bid or ask prices, but I can see ONE trade today at $.009 (10,000 shares). I can see this trade posted on iHub and also at my 2 brokerages.

So the good news is that we can see trades that are executed on the Expert Market (in real time as far as I can tell). The bad news is that I can't see any bid or ask quotations.

[chemist72]

DESTQ moved to the OTC "Expert Market".

https://www.otcmarkets.com/stock/DESTQ/overview

For info on the Expert Market, see the link below.

https://blog.otcmarkets.com/2021/03/25/understanding-the-expert-market/

[chemist72]

That sounds about right. My broker wasn't clear about how it will be handled at their firm.

Guess I'll just have to wait until tomorrow. Maybe put in a "test" order later in the week.

See what happens. lol

As long as shares aren't officially cancelled, I'm okay with whatever they can do for me. I'm pretty much "locked in" with my current shares. Nothing really to do until a POR is filed.

[LKat7]

I called TD - They told me I can still sell my stocks through them with a limit order but they may not be able to provide up-to-date quotes.

[chemist72]

You probably need to talk to your broker.

Once upon a time I had a stock move to the grey market. It was only temporary for about a month. But I was still able to buy some cheap shares. You have to be somewhat lucky as a trade usually can't be made unless there are 2 exactly matching orders on the bid and ask.

At least that's how I recall it working. TDA was able to give me a bid and ask price which helped a bit at least.

They probably won't do that anymore for grey market stocks. jmo

[LKat7]

If we are reduced to selling on the grey market, how do we prove we own the shares? Is there something we need to do now? A transfer?

[chemist72]

Still believe my reason for buying DESTQ is valid.

My primary reason for buying DESTQ shares almost 2 years ago was that I believed once the bankruptcy case was resolved (by having a POR submitted and approved by the BK court), that Marquee Brands would eventually merge with the debt-free shell that remained with its ~$200M in tax assets still intact (NOLs).

I believe that is still a possibility today, almost 2 years later.

Even though DESTQ shares will probably be moved to the grey market tomorrow and will be difficult to either be bought or sold, unless those shares are CANCELLED after the POR is made effective, those shares are still "real" and could be "resurrected" by Marquee Brands with a name and or ticker change by merging with the remaining DESTQ shell.

As it did from the beginning of this BK, it all depends on what is proposed in a POR. If the court finally pushes DESTQ to submit a POR after the upcoming Omnibus Hearing, then we will probably know the final fate of DESTQ shares.

All the above are just my own opinions.

[LKat7]

I too have decided to hold until the bitter end on this one. I am certainly still hoping that this ends with a positive and we make a little.
My position is small. Not that anyone wants to lose money, but I can afford to lose it and take the tax write-off. I guess it will depend on the POR. With the new SEC Rules, it would seem that they could provide the information needed to allow the shares to be traded, but I also think they would have done so by now if they intended to keep DESTQ a viable stock.

[chemist72]

Unfortunately, before 10/13 comes, DESTQ will likely not be publicly quoted and thus will be difficult (if not impossible) to trade.

OTC Markets has not announced what will happen to stocks/tickers that are in bankruptcy proceedings. Besides DESTQ, I'm also looking at SHLDQ, another ticker that has been in bankruptcy for about 3 years now. Whatever happens to Sear's stock will likely happen to DESTQ. I expect all tickers in bankruptcy will either be moved to the grey market or to the so-called expert market. Either way, it will be very difficult to trade any of these stocks.

The only hope left at that point for revival of DESTQ will lie with the POR that will have to be submitted to the Court eventually and approved. If the POR says that DESTQ shares will be cancelled, that is basically the end of the road for these shares.

On the other hand, if the POR proposes a reorganization of DESTQ and basically a reverse merger with Marquee Brands, then DESTQ shares could be exchanged for shares with a new ticker and new name essentially owned by Marquee.

For those willing to wait for a POR to be filed with the court, the fate of DESTQ shares should finally be known at that time.

At this point, I've decided to hold most of DESTQ shares until a POR is filed, no matter how long that might take. When all hope is gone, I will try to sell these shares for a tax write-off when I can.

[LKat7]

YES!

[chemist72]

Too bad someone didn't object to previous extensions.

But better late than never, I suppose.

Judge will have to impose some sort of deadline though or DESTQ might never file a POR. Just have to wait and see what happens on October 13.

[corvatsch]

VERY GOOD !!!!

[chemist72]

Judge signed order for Omnibus Hearing on 10/13/21.

See docket 1114.

https://cases.primeclerk.com/DestinationMaternity/Home-DocketInfo

[chemist72]

My hope is that the judge will reach a fair and equitable resolution of this issue with the 2 parties.

I have a feeling that the judge may have been waiting for someone to object to one of the deadline extensions that DEST has asked for. I agree with the arguments against another extension presented by the objectors.

I hope the judge in his infinite wisdom, will be able to at least get the 2 parties to agree to some kind of compromise. After all, he may be tired as well of all the extensions he has granted to DEST.

If you check the dockets, you will see there has been very minimal movement in the case during the past 6-8 months or so.

Its in the judge's hands now.

[LKat7]

Thanks for the update on the October hearing. I agree with everything you just said in your last 2 posts. This has been dragging out entirely too long. I am continuing to hope that we get the increase in value over canceled shares. I knew it was a risky play but also has huge upside potential. Again, many thanks for your diligence and sharing on this board.

GLTA

[chemist72]

No matter how you look at it, DESTQ shares are still a HUGE gamble.

If you believe DESTQ will be reorganized by merging with Marquee Brands (a reverse merger with MB having all the assets except for the NOL tax assets which DESTQ still holds), then longs could be greatly rewarded with a HUGE increase in share price once the BK case is closed and MB takes over the DESTQ "shell".

Otherwise, DESTQ shares will die and current longs will get nothing for their shares.

Like I said, a big gamble.

[chemist72]

BK court has scheduled an Omnibus Hearing for 10/13/21.

My guess is that the main agenda item will be the objection that was raised by Pan Pacific to the requested extension for filing a POR.

Great news imho. We'll see if the Judge will finally hold DEST's feet to the fire and will not automatically give DEST another filing extension.

We'll see what happens on the 13th.

P.S. Btw, kudos to Pan Pacific. Its about time someone called out DEST on their stalling tactics. Hope the judge reminds them that they have had 7 extensions already from the original deadline for filing a POR.

Just to remind everyone, the original deadline for the POR submission was Feb. 18, 2020.

[propert]

Think you will find that most brokers have gone to close-out only mode for this stock.

Yes, but since it is still trading, albeit small volumes, I was wondering how to leverage this situation and get onto the buy side. If people are forced to sell, there are bound to be some deeply discounted shares available. Someone may be cleaning up! Therefore, I refuse to list my shares for sale and may instead try to scalp some shares since there is indeed a market for them, albeit very restricted.

You may not even be able to realize a loss for tax purposes if you cannot sell these shares in any forum.

I think this is a common misconception. Even if this situation were to play out, brokers apparently have a "share liquidation" process that allows the tax filing to be done. If one can verify that a stock has no value and has been liquidated, one may also predicate their annual write-off on this, regardless of the broker's facilitation of the process.

[corvatsch]

DESTQ will do as Sirius Satellite Radio in 2008-09 ....

[LKat7]

I'm not clear to me how a POR / bankruptcy is going to be handled either. I knew this was a gamble when I bought it, but now I am considering taking the loss for tax purposes.

https://www.sec.gov/rules/final/2020/33-10842.pdf

[chemist72]

Think you will find that most brokers have gone to close-out only mode for this stock.

This is in anticipation of the new SEC rule regarding current information that goes into effect on Sept. 28. I still don't know exactly how tickers that are in the midst of bankruptcy proceedings will be affected by this rule.

I have stated previously that I am expecting this ticker will likely become untradeable after Sept. 28. If that happens then the only way you will be able to sell these shares is if and when the bankruptcy cased is closed and this ticker is then merged with a real company (like Marquee Brands for example) and can then apply for a new listing on either a real exchange (e.g. NYSE or NASDAQ) or on the OTC Markets trading site.

I have no idea whether or not this will happen in the near future with DESTQ shares. If this company does not get reorganized and emerge from bankruptcy it will never be worth anything. You may not even be able to realize a loss for tax purposes if you cannot sell these shares in any forum.

Its all a crap shoot now as I expect the share price to go near ZERO after Sept. 28, unless some exception is made to the new SEC rule for companies in bankruptcy.

Its all a big unknown for me right now.

[propert]

Theoretically, where does one buy pink sheets such as DESTQ? My broker went to close-out only mode for this ticker, and I'm not ready to sell mine until we have news. In the past, this board has been able to point me toward brokers that are still available in the OTC environment. Any help in that regard is appreciated.

[chemist72]

No way DESTQ restarts immediately.

Even after they file a POR, it will still be another 6 months or more until this BK case is resolved/closed.

Sad.

[corvatsch]

it would also be right to put an end to this constant postponement of the DESTQ question ...
over two years of postponement ... a scandal.
DESTQ make it fail, or they have to restart it immediately ...

[chemist72]

Pan Pacific objects to DESTQ's request for a 7th delay in filing a POR!

Pan Pacific's reason are stated in docket #1103 filed on 8/27/2021. I just finished reading the entire docket (8 pages long) and I tend to agree with Pan Pacific's arguments.

Below are a few specific quotes from that docket:

First, six prior extensions of exclusivity have failed to result in any meaningful progress toward a chapter 11 plan...

Second, the Debtors’ contention that the size and complexities of these chapter 11 cases warrant a seventh extension of the Exclusive Periods is without merit. The matters cited as requiring considerable time and effort are no different from a “typical” chapter 11 sale case in this jurisdiction...

The Debtors have had ample time to conduct negotiations and formulate at least some iteration of a chapter 11 plan.

Nonetheless, the Debtors have failed to move these cases forward. The Court should not countenance the Debtors’ complacency in these chapter 11 cases, especially when none of the key constituents wants this case to linger or continue on its present glacial path, by rewarding the Debtors with a seventh extension of the Exclusive Periods. Accordingly, the Motion should be denied.

https://cases.primeclerk.com/DestinationMaternity/Home-DocketInfo

[LKat7]

Martha's brand was taken private before purchased by Marquee. So I guess we just hurry-up and wait some more. At this point, no reason to sell. I am going to keep holding and dreaming big

[chemist72]

Think most of these brands were privately owned.

The only one that I know was publicly traded was Martha Stewarts. As far as I can tell her company was traded on the NYSE until 2015 when it was bought out by another company. Marquee Brands acquired Martha Stewart® and Emeril Lagasse® brands in 2019.

That's about all I know.

[LKat7]

According to their website they also own:

BCBGMAXAZRIA
Ben-Sherman
Body-Glove
Bruno-Magli
Dakine
Emeril-Lagasse
Martha-Stewart

I can't figure out what happened to share holders for the other brands. Anyone have any insight?

[chemist72]

Do you know that Marquee Brands already owns two brands that were formerly associated with Destination Maternity?

Motherhood Maternity and A Pea in the Pod Maternity can both be found on Marquee Brands web homepage:

https://www.marqueebrands.com/

This is in addition to the 9 other brands that are associated with Marquee Brands.

It wouldn't surprise met at all if Marquee Brands decided to merge with DESTQ once the bankruptcy case is closed.

That hope is the ENTIRE reason why I still own DESTQ shares. Might take 2-3 years for this to come together (similar to the example I gave in my previous post), but believe me, IF Marquee Brands does decide to go public with DESTQ then that newly merged company will be worth a LOT MORE than just a few pennies.

Waiting for the dream to come true!

[chemist72]

Yes. Look at P10 Holdings Inc.

Share price went from the $.20's to $.30's during bankruptcy proceedings early in 2017. Currently trading near its all-time high of $8 per share.

The story with this company is very long and I will not go into all the details now. Suffice it to say that this company was basically broke after emerging from bankruptcy but received about $4M in cash when it sold approximately the same number of shares as retail shareholders owned, thus reducing the company's ownership to just over 50%. The original company retained their NOLs and merged with a ~$4B private equity company that was looking to go public.

They issued shares in the newly reorganized company to their original shareholders on a 1 for 1 basis. Took about 4 years of slow price increases, but like I said earlier, their sp went from the $.30's to around $8 currently.

Link to their chart is below:

https://www.barchart.com/stocks/quotes/PIOE/technical-chart?plot=BAR&volume=total&data=WO&density=X&pricesOn=1&asPctChange=0&logscale=0&sym=PIOE&grid=1&height=500&studyheight=100

[pennystock_es]

Does anyone know of an example of a company that has gone public like Marquee Brands and that has stayed with a DESTQ type company?

[chemist72]

If you're going to dream, dream BIG.

Btw, my "realistic" numbers are as follows:

If POR states DESTQ shares will NOT be cancelled - $.10 to $.20;

If POR states DESTQ shares will NOT be cancelled and DESTQ will merge with Marquee Brands - $1 to $3;

Now if Marquee Brands decides to put all their assets under the umbrella of DESTQ's successor, then $10 to $20 becomes a realistic possibility.

[chemist72]

No legal limitations as far as I know.

However, you would think at some point the judge might get suspicious or would at least look into the reasons they keep proposing for their extensions.

I'm not a lawyer, so just speaking out of "common sense."

[LKat7]

I love those numbers! $10-$20 would be phenomenal, but I would be happy with $1-$2 which seems more realistic to me. There have been multiple extensions, is there some point where the courts wont allow any more? I am going to keep holding my 'lottery tickets' for as long as it takes.

[chemist72]

LOL, so would I. But those are just fantasy prices right now.

First DESTQ must submit a POR. Then the POR needs to be accepted by the court and an effective date established.

Then a new ticker/name would need to be obtained from FINRA and an exchange rate of old DESTQ shares for new shares determined.

Then fins need to be filed so that company can become current according to OTCM rules.

So lots of step to go before a maximum valuation can be obtained. Will take at least another year and maybe even longer.

How many are prepared to hold DESTQ shares that long??

[corvatsch]

$10-20/share ?

I would be a millionaire ....

[chemist72]

IF DESTQ shell is merged with Marquee Brands and their roughly $3B in brand sales, I'd say $100-200M market cap would be plausible!

How does $10-20/share sound? Now that's what I would call a lotto "jackpot". LOL

[corvatsch]

20 million dollars cap could be plausible.
$ 2 per share ...

[chemist72]

I truly have no idea.

But that's why this is an ideal "lotto" play. You either go bust, or you get rewarded many multiples of what you paid for your "tickets".

[corvatsch]

With a possible reorganization of the company, and zero debts, in your opinion what would be the new cap. market for DESTQ?

thank you.

[corvatsch]

By this Motion, the Debtors request the entry of an order, pursuant to Bankruptcy
Code section 1121(d) and Bankruptcy Rule 9006(b)(1), granting an extension of the Exclusive
Periods. Currently, the Exclusive Periods are set to expire on August 15, 2021 and October 17,
2021, respectively.4
The Debtors request a ninety (90) day extension of the Exclusive Periods to
November 13, 2021 for the Exclusive Plan Period and January 15, 2022 for the Solicitation Period,
pursuant to Bankruptcy Code section 1121(d).
16. Such an extension of the Exclusive Periods is without prejudice to the rights of the
Debtors to seek further extensions thereof

[LKat7]

I am going to hold as well. Worst is total lost, best is small profit. Zero or Hero right?

I received a follow-up regarding the delisting of DESTQ from TD again. They suggested options from TD are pasted below. Is anyone transferring their shares? If yes, where to?

Take no action. You are not required to sell these securities; however, starting September 3, 2021 we will restrict these securities to liquidation-only transactions. You may continue to hold them, but you may have difficulty selling them in the future and there is no guarantee as to what their future value will be.

Place trades to liquidate. You may place trades to liquidate these securities now. Due to the uncertainly, we cannot guarantee there will be sufficient liquidity to close your position(s) in the future.

Transfer your positions to another financial institution. Other U.S. financial institutions are also impacted by this amendment so you may have difficulty transferring them out of TD Ameritrade. If you are interested in transferring the assets, please submit any outgoing transfers requests to us. (These transactions may incur fees or commissions, depending on the asset type.)

[chemist72]

Given up trying to make timeline predictions for DESTQ.

After 7 POR extensions, seems like neither the company nor Marquee Brands (who purchased all of DEST's assets, except for the NOLs) are in any hurry to close this BK case.

In any case, I've decided to hold ~$1K worth of DESTQ shares until the bitter end, whenever that might be. I fully expect DESTQ shares to be demoted to the grey sheets come Sept. 28. However, since I'm only holding $1000 worth of shares (my purchase price), I will continue to hold until this BK case is resolved.

It can't go FOREVER. At least I think it can't, LOL.

[corvatsch]

this time (mid-November) will be the definitive one ...

[chemist72]

DESTQ recently filed another requested extension to mid-November.

So probably no POR until mid-November at the earliest.

[corvatsch]

in my opinion ... before mid-November ...

"The requested extension of the Exclusive Periods of ninety (90) days to August 15,
2021 and October 17, 2021, respectively, does not prejudice any parties-in-interest and relieves
the potential pressure on the Debtors or any other parties-in-interest to file an insufficient or nonconsensual chapter 11 plan"

[chemist72]

actually, mid November

[corvatsch]

read well....
I wrote mid-September !!!