Modell's Sporting Goods to liquidate
Modell’s Sporting Goods filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey on March 11, 2020 and said it planned to liquidate its 153 stores throughout the northeast.
The company claimed the distinction as America’s oldest family owned and operated retailer of sporting goods, athletic footwear, active apparel and fan gear, and was known for its longtime advertising slogan, “gotta go to Mo’s.”
“Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations. 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,” Modell’s CEO Mitchell Modell, said. “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. I want to thank each and every one of our associates for their support over the years and our customers for their historic support of Modell’s. This is certainly not the outcome I wanted, and it is one of the most difficult days of my life.”
The company’s 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 going forward, according to a statement from the company.
Modell said liquidation provides the greatest recovery for our creditors and noted the company partnered with Tiger Capital Group to conduct liquidation sales.
Modell’s was founded in 1889.