Modell’s will continue to explore options to keep some or all of the company aliveGETTY IMAGES
Modell’s Sporting Goods has "filed for Chapter 11 bankruptcy and will be closing its remaining 115 stores," according to Anne D'Innocenzio of the AP. The century-old sporting good's chain "becomes the latest traditional retailer to succumb to a fast-changing environment." A Modell's spokesperson said that that as of yesterday, the "company had 3,623 employees." Modell's said that it will "start liquidation sales at the remaining stores Friday morning." D'Innocenzio noted the comapny will "team up with Tiger Capital Group to oversee the going-out-business sales" (AP, 3/11). In N.Y., Neil Vigdor writes Modell's, which claims to be the oldest sporting goods retailer, cited "diminished sales of sports apparel and millions in unpaid debts to vendors and landlords." Modell's President & CEO Mitch Modell said that the "combination of an unseasonably warm winter, six fewer days in the shopping season this year between Thanksgiving and Christmas, competition from Amazon and the coronavirus pandemic have hurt the company’s bottom line." He added that the "futility of New York sports franchises like the Knicks, Jets and Giants has not helped either" (N.Y. TIMES, 3/12). Modell's Exec VP/Marketing, eCommerce, Distribution & HR Tami Mohney said that "until the Chapter 11 process is finished, Modell’s will continue to explore options to keep some or all of the company alive, including a recapitalization of the business through a sale of some or all of its assets or finding an equity partner" (NEWSDAY, 3/12).
