Denver-Based XP Events Files For Chapter 11 Bankruptcy

By Don Muret, Staff Writer, SportsBusiness Journal

XP Events, a retail concessionaire whose sister company holds the merchandise contract for the '10 Vancouver Olympics, has filed for Chapter 11 bankruptcy protection in Denver, where it is based, according to federal documents obtained by SportsBusiness Journal. The September 30 filing lists XP Events' top 20 unsecured creditors as being owed liabilities of just over $5M, but XP Events Chair Tripp Wall indicated the number is closer to $2M. The filing's list includes Bank of America ($1.5M); the D'Backs ($397,880); the Bobcats and Time Warner Cable Arena, their NBA facility ($391,114); New Era Cap Co. ($256,000) and the Thunder ($82,794). Chapter 11 filings allow a company to reorganize under a court-approved plan while continuing to do business. Wall said the filing does not affect the '10 Olympics deal because that contract is held by a separate entity called XP Canada, an affiliate whose primary lender is the Royal Bank of Canada. XP Events was forced to file for Chapter 11 after experiencing liquidity issues, according to Wall. Bank of America declined to extend a line of credit with the company, leading to the action, he said. "We are disappointed [but] optimistic," Wall said. "This will protect our assets and our employees, and we will emerge as a fundamentally stronger company." XP Events co-Founder & President Alan Fey added, "I have since been told by Tripp that this will be better for our company long term. I will do my best to make sure our clients, suppliers and staff will be kept up to date and made whole as best I can."

TEAMS' REACTIONS: D'Backs President & CEO Derrick Hall said he could not comment on the filing because of confidentiality provisions within the team's contract with XP Events. Suns President & CEO Rick Welts, another XP Events client, declined to comment on the filing, but said that the Suns' merchandise business will continue as usual at US Airways Center. The same is true for the Bobcats, an NBA club that has new jerseys on sale in home white and road blue at their pro shop, a team spokesman said. The filing lists the Jaguars as a creditor to the tune of $55,592, but Jaguars Senior VP/Stadium Operations & CFO Bill Prescott said that number is not accurate because the team controls the merchandise revenue and pays XP Events through its accounts. At the end of August, XP Events owed the Jaguars about $14,000, Prescott said.