Popular catalog and online gift company RedEnvelope has fallen on hard times. On Friday the company reported that it filed for Chapter 11 bankruptcy protection on April 17 with the US Bankruptcy Court for the Northern District of California, San Francisco. The company will also be sold. They have entered into an agreement with Creative Catalogs Corp. to purchase RedEnvelope's assets and assume some of the company's liabilities for $5.7 million. RedEnvelope has also gotten a $4.5 million debtor-in-possession credit facility and loan from Creative Catalogs and Granite Creek FlexCap so that the business does not have to shut down during the transition process (guess that explains why their catalog is still showing up in my mailbox). The final sale price will be will be less the outstanding amount from that loan.

The nine-year-old company was one of the few e-commerce sites with a successful catalog business but the recent tough economic climate and the bank's stricter lending policy for retailers found the company in trouble this year. The company catered mainly to the middle class and upper middle class brackets which are now cutting back on spending due to economic concerns. Order shipments had dropped 20% during the third quarter compared to last year. DM News says that in February, RedEnvelope reported a loss of $4.3 million versus a net income of $5.3 million during the same time last year. The RedEnvelope sale must be completed by May 30 and during that time RedEnvelope can accept other bids.

It's a story we've seen many times, a brand that has been consigned to the mothballs comes back stronger than ever combining a venerable past with a new products, becoming a hot name once again. But how does this happen? Speaking at the American Express Publishing Luxury Summit Marta Benson, CEO of Gump's, the San Francisco-based luxury store which specializes in fine jewelry and home goods, gave some insight into her moves to bring Gump's back into the luxury spotlight.

Courtney Love, the rock singer and widow of Kurt Cobain, has sold 25 percent of Nirvana's music library to Primary Wave Music Publishing. Though their entire catalog does not have an exact monetary value, Courtney reportedly banked $50 million for the sale of the rights. Love has closely guarded the rights to the 98% of the band's library since she inherited it upon the death of her husband, the Nirvana front man, in 1994. His former band-mates own a mere 2% of the collection, including some of the band's most famous works, like Smells like Teen Spirit.

In and out of rehab, as well as prison, for the past several years, it is likely that she decided to sell this share of Nirvana's music to cover some of her legal costs, since her money problems are well known, though she said she found managing her entire estate "overwhelming."