ABCs
Data sales in ABCs and Chapter 7: what the record shows
Picking between an ABC and Chapter 7 usually comes down to cost, speed and who controls the process. When the company has years of email, Slack and code, a further question matters: which route has actually produced data sales?
In this guide
01
The scorecard by route
Chapter 11
Reported data sales
Spirit Airlines archive ($10.0M winning bid, pending). Character.AI code ($20M stalking horse).
Notes
The only court cases with AI bidders
Chapter 11, consumer data
Reported data sales
23andMe ($305M), Bed Bath & Beyond ($21.5M), RadioShack ($26M IP)
Notes
Customer records with a brand
ABC
Reported data sales
Zulily brand and customer database ($4.5M)
Notes
No reported archive sale to an AI buyer
Chapter 7
Reported data sales
None reported
Notes
Trustee must preserve data quickly
Voluntary wind-down
Reported data sales
150+ deals via SimpleClosure, $10K to $100K typical
Notes
Where most volume is
| Route | Reported data sales | Notes |
|---|---|---|
| Chapter 11 | Spirit Airlines archive ($10.0M winning bid, pending). Character.AI code ($20M stalking horse). | The only court cases with AI bidders |
| Chapter 11, consumer data | 23andMe ($305M), Bed Bath & Beyond ($21.5M), RadioShack ($26M IP) | Customer records with a brand |
| ABC | Zulily brand and customer database ($4.5M) | No reported archive sale to an AI buyer |
| Chapter 7 | None reported | Trustee must preserve data quickly |
| Voluntary wind-down | 150+ deals via SimpleClosure, $10K to $100K typical | Where most volume is |
02
What this means for the choice
- An ABC keeps control with an assignee you choose and can move faster than court, which helps keep systems alive.
- Chapter 7 hands control to a trustee who may not know the archive has value. Tell them.
- Voluntary wind-downs, before either, are where most data deals close today.
Whatever route you choose, preserve the data first. See the winding-down checklist.
FAQ
Questions, answered
Has any ABC sold an email archive to an AI company?
Not in any reported case we know of. Zulily's ABC sold a customer database with the brand.
Is a data sale easier in an ABC or Chapter 7?
There is no track record for either yet. An ABC keeps control with an assignee you choose, which can make preserving the data easier. Ask counsel.
Find the buyers that fit your company
Answer a few questions about your size, tools and history. We show which buyers want a company like yours. Free, no files.
Keep reading
Sources
Every number on this page links back to one of these.
- 1Chapter11Cases (Stretto): docket report on the Spirit Airlines de-identified data salechapter11cases.com
- 2PPC Land: Character.AI faces 40 attorneys general over who can buy its users' chatsppc.land
- 3WBTV: Anne Wojcicki's nonprofit gets court approval to buy 23andMe for $305Mwbtv.com
- 4PYMNTS: Overstock wins auction for Bed Bath & Beyond digital assets (2023)pymnts.com
- 5ArentFox Schiff: agreement reached on sale of consumer data in RadioShack bankruptcyafslaw.com
- 6Retail Dive: Beyond acquires Zulily's brand and assetsretaildive.com
- 7Retail Dive: Zulily goes out of business and liquidatesretaildive.com
- 8MIT Technology Review: AI labs are buying data from dead startups (13 Oct 2026)technologyreview.com
- 9U.S. Courts: Chapter 7 bankruptcy basicsuscourts.gov
- 10Pewter Datapewterdata.com
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