Sporting Goods Industry News for July 29, 2016
Following a week of legal maneuvering that threatened to entangle The Sports Authority mess in even more litigation, the retailer, term loan lender WSFS and unsecured creditors reached a settlement late this week that will carve out a mere $1.5 million to settle an estimated $50 million in post petition vendor shipment claims, guarantee the creditors’ lawyers fees of $100,000 per month for nine months beginning in August and $75,000 per month thereafter.
The bid submitted by Gordon Bros. and Hilco would guarantee payment of 69% of the final valuation of the inventory which is represented to be $21-22 million.
The controlling shareholder of recovering brand Puma is seeing less success with its Volcom business, as Q2 showed a 15% decline in sales to €110.4 million from €129.8 million, which was down 9% constant currency.
In reporting net income of $135.2 million, down from $148.5 million, Newell Brands said it was making good progress on integration and expressed confidence in delivering on its promise of $500 in cost synergies.
The French company specializes in trail-running and outdoor products and had sales of about €6.5 million ($7.3 mm) for the year ended Jul. 2015.
The board determined that the $6.05 a share tender offer from Mill Road Capital is superior to the initial $5.75 a share offer from Incipio.
Brooks Running is working on a plan to protest Rule 40, which prevents Olympic athletes from promoting themselves immediately before or after the games, the Wall Street Journal reported.
The Eager Beavertons claim that the Hummel Rapid x-Blade LTD Edition soccer cleat infringes on its 8,356,428 patent for a flexible reinforcing plate and the Hummel Hero Baselayer infringes on its 8,133,824 patent for dimensionalized mesh.
Stubai is recalling about 20 of its Tour Lite Telescope Ice Axe, because the knife in the axe handle can detach and cause a laceration risk.