The Innovative group of stone companies may move closer to resolving their Chapter 11 bankruptcy status and continue operations this month with a planned sale of most assets.

Innovative, which provides Home Depot Inc. stores with granite and the Everlife™ brand of stain-resistant nationwide, will likely be purchased by entities affiliated with a Massachusetts investment group specializing in financially challenged companies.

The U.S. Bankruptcy Court for New York’s Eastern District approved an auction/purchase plan Jan. 20 for Hauppauge, N.Y.-based Innovative, which filed for Chapter 11 protection last April.

Under the plan, bids can be placed for a group purchase of most of Innovative’s assets until Feb. 8 at 9:30 a.m. EST. Under an agreement called a stalking-horse purchase, potential bidders will compete with the Woodside Group, a series of investment arms of Woodside Capital Management. If other qualified bids are made on Feb. 8, an auction will be held on Feb. 10.

The bankruptcy court will then consider Woodside or the successful bidder (if an auction is held) for approval on Feb. 18.

The sale proposal comes after a search by SSG Capital Partners LLC, a Philadelphia-based investment bank, to refinance Innovative after its Chapter 11 filing. Court documents show that SSG developed a list of more than 70 potential financing partners and entered into 16 confidentiality agreements with possible investors before receiving a proposal from Woodside.

Woodside, based in Burlington, Mass., offers financing for middle-market companies for strategic redirection or reorganization.

Under the agreement, the purchaser will receive most of the assets of the Innovative group of companies, including the use of the Innovative name.