Lender Axelrod Turns $120 Million Loan into Ownership of Bankrupt Brooklyn Mirage

The company cited mounting financial pressures from high operational costs, pandemic-related disruptions, and significant debt obligations. As part of the bankruptcy proceedings, the Delaware Bankruptcy Court has approved bidding procedures for a Section 363 sale of Avant Gardner's assets.

AG Acquisition 1 LLC, an affiliate of the lender, has been approved as the "stalking horse" bidder, with the ability to credit bid $110 million for the assets. This initial bid sets the floor for an auction, where other "qualified bidders" can submit higher offers.

To qualify, bidders must submit a formal purchase agreement with an overbid of at least $350,000 above the stalking horse bid, demonstrate financial capacity, and provide a good faith deposit of at least 10% of the purchase price. The deadline for offer submissions is October 8, 2025, with an auction scheduled for October 15, 2025.