Update: Modell’s Sporting Goods to Close All Stores
After 130 years, Modell’s Sporting Goods has voluntarily filed for Chapter 11 bankruptcy and will close all of its stores.
Modell’s stores will initiate store closing liquidation sales and will continue its online sales during this process, the company announced. It has partnered with Tiger Capital Group to liquidate the remaining stores.
Just over two weeks ago, the nation’s oldest family-owned and operated retailer of athletic apparel, footwear and sporting goods said it would close 24 stores of its 153 stores.
“Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations,” CEO Mitchell Modell said. “While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers.”
“This is certainly not the outcome I wanted, and it is one of the most difficult days of my life,” he continued, “but I believe liquidation provides the greatest recovery for our creditors.”
Modell’s said its lenders and long-standing partners will provide the company with the financial flexibility to operate the business in the near term, including the timely payment of employee wages and benefits, continued provision of customer orders and shipments, and other obligations as they come due.
“We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates,” Modell said.