A bankruptcy judge in Delaware has approved a plan by the Scooter Store of New Braunfels to sell itself to the highest bidder at an auction in August, 1200 WOAI news reports.


  U.S. Bankruptcy Judge Peter J. Walsh approved the request of Sun Capital Partners, which is the majority owner of the bankrupt mobile wheelchair company, to schedule the auction on August 6, with the closing of the sale taking place August 13.  The motion was filed with no objections, according to the New York based Law 360 blog.


  The Scooter Store laid off almost all of its employees and filed for Chapter 11 bankruptcy protection in April, citing its 'financially precarious position' due to changes in federal health care laws.


  One of the Scooter Store's major creditors is Medicare, which claims the company owes it as much as $100 million in overpayments.  The Scooter Store also defaulted on three secured credit facilities.


  The company said ongoing federal investigations, including a criminal investigation by the Department of Justice which resulted in the company's New Braunfels headquarters in March, 'exerted a significant financial toll and damaged the brand an commercial appeal.'


  It is unclear who might bid for the assets of the Scooter Store, or whether claims filed against the company by the City of New Braunfels would be settled by the auction.


  The Scooter Stores leased headquarters building in New Braunfels is being eyed as a possible Comal County Justice Center facility.


  The Scooter Store, which employed some 2400 people at the beginning of the year, now employs fewer than 300, according to bankruptcy court records.


 The court documents did not refer to the sale as a 'liquidation,' and does not indicate if the sale would allow the Scooter Store to remain in business in some form.  It also doesn't say what property the Scooter Store still owns which would be of value to a bidder.