Performance Sports Group, the maker of Bauer hockey gear, "lopped almost half the market value" from the company after it disclosed an "investigation into its books" and that it may default on company debt, according to Jeffrey Jones of the CP. PSG on Monday said that it has "delayed filing its audited year-end financials, and retained legal counsel and financial advisers to assist with the probe." The company has a "significant following among Canadian investors," and its Toronto Stock Exchange-listed shares skidded 46% in a "mass sell-off on Monday." Shares of PSG have lost about 85% of their "worth in the past year, as the company's fortunes eroded." PSG and its investors had "already endured a tumultuous year, which included senior executive and board changes, falling sales amid a retail slump" and a 15% cut to the workforce. The company has been "hit by credit problems and outstanding bills among several of its major customers, prompting it to reduce shipments to some and boost its own bad debt reserves." Besides Bauer, PSG "distributes Easton baseball equipment, as well as accoutrements for lacrosse and roller hockey" (CP, 8/16). PSG yesterday confirmed that it expects its $650M credit facilities "to be in default when it fails to file its annual report" with the SEC on time (N.Y. POST, 8/17).
