Nearly a month after taking over a Norfolk bridal shop whose owner is deeply in debt, Old Point National Bank has hired a company to auction off the remaining inventory at House of Maya.
The move comes weeks after the bank began scrambling to outfit brides with their wedding dresses after store owner Maya Holihan shut the doors of the bridal shop without a word to her customers on Aug. 25.
The following week, WYDaily uncovered 10 civil claims and lawsuits filed against Holihan that revealed she is more than $200,000 in debt to former employees, unpaid landlords, and American Express Bank.
The auction is being held as a “short notice bulk sale” at 12:30 p.m. on Thursday at the bridal shop, located at 258 Granby Street, said Atlantic Asset Management Group Vice President of Development Michael Wright.
The asset management group has been hired by Old Point to run the auction. The goal is to find an investor who will bid on the entirety of the estimated $2.3 million in House of Maya inventory, which includes wedding gowns and accessories, formal wear, furniture and retail store equipment, Michael Wright said.
In an online ad, Atlantic Asset calls the auction a “turn-key business opportunity” with a “landlord lease option.” The ad also states that Holihan, who only surrendered her assets but not her business to the bank, is interested in staying on to help with the transition “or assist managing the business.”
Michael Wright added that while Old Point will get the bulk of the auction’s payout, the asset management group will take a 12 percent buyer’s premium for the sale — meaning that whoever wins the inventory will have to add a little dough to the top to pay Atlantic Asset.
“The proceeds of the sale will be used to repay the Old Point / Small Business Administration loan first. If there are any additional funds available, they will then go to other secured creditors in order of priority,” Old Point spokeswoman LauraWright wrote in an email.
Michael Wright said that the asset management group is in the process of taking pre-auction bids, but hasn’t determined a minimum bidding price yet. The live auction will also be shown online so that distant investors can also participate.
Laura Wright wrote in an email that the bank hasn’t stopped helping the House of Maya brides whose dresses were in-house when Holihan shut the doors. At the beginning, there were 135 wedding pieces — gowns, bridesmaids dresses and veils — in the store; however, Wright couldn’t confirm how many dress orders were pending or hadn’t been placed altogether.
Laura Wright said that there are still “a few dresses” left in the shop, but most brides are finishing their alterations.
Those interested in bidding on House of Maya’s inventory can contact Atlantic Asset at 757-461-6867.
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This article was published in partnership with WYDaily’s sister publication, Southside Daily.