Exhibit
99.1
Contact:
Joseph
Hassett
Senior
Vice President, Investor Relations
(610)
228-2110
joeh@gregoryfca.com
a21,
Inc. Announces Voluntary Reorganization
and
Stalking Horse Bids
Jacksonville, FL – December 4, 2008
– a21, Inc. (ATWOE.OB) today announced that it and its subsidiaries,
SuperStock, Inc. and ArtSelect, Inc., have filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States
Bankruptcy Court for the Middle District of Florida, Jacksonville
Division. In addition, a21 has filed separate motions to sell the
U.S. assets of SuperStock, Inc. to Masterfile Corporation, and to sell the
assets of ArtSelect, Inc. to Metaverse Corporation. Both sales are
free of liens and encumbrances pursuant to Section 363 of the Bankruptcy Code,
and are subject to higher and better bids at an auction sale expected to be
conducted by the Bankruptcy Court in the next 4-6 weeks.
a21 has
filed motions for approval of bidding procedures for the auction
process. The bidding procedures contemplate that potential purchasers
must submit a minimum qualifying bid, accompanied by a bid deposit and signed
purchase contract in advance of the auction.
a21 has
also filed a series of motions with the Bankruptcy Court to assure the
continuity and stability of its businesses, including the payment of
wages.
John
Ferguson, President and CEO of a21, Inc., said, “Over a year ago we announced
that the Company and its subsidiaries were exploring strategic
alternatives. After exhausting all possibilities, and considering the
current state of credit markets, we determined that the best way to complete a
restructuring of our Company and to protect the franchise value of our
underlying businesses was to pursue a sale of the Company’s assets under Court
supervision in a Chapter 11 proceeding.”
“The
Company and its subsidiaries will conduct business as usual through the auction
sales,” added Ferguson.
The
Company does not expect any distributions will be available for its
shareholders.
The
Company is represented in the bankruptcy filing by Gardner Davis and Michael
Kirwan of Foley & Lardner LLP.
The
Company has established an internet website, http://www.a21group.com/bank.html,
to provide information regarding the bankruptcy case, including copies of major
pleadings and information for potential purchasers regarding the ArtSelect
business assets, the SuperStock business assets, the bidding rules and the
auction process.
About
a21
a21
(www.a21group.com) is
a leading online digital content company. Through SuperStock (www.superstock.com;
www.mediamagnet.com;
www.superstock.co.uk;
and www.purestockx.com),
and ArtSelect (www.artselect.com;
www.postersetc.com),
a21 delivers high quality images, art framing, and exceptional customer service.
a21 and its companies, with offices in Florida, Iowa, and London, provide
valuable and viable choices to key business partners and customers in the stock
image, art and wall decor industries.
The
statements contained in this press release contain certain forward-looking
statements, including statements regarding a21, Inc.’s expectations, intentions,
strategies, and beliefs regarding the future. All statements contained herein
are based upon information available to a21, Inc.’s management as of the date
hereof and actual results may vary based upon future events, both within and
without the control of a21, Inc.’s management.