Modell’s Plans to File for Chapter 11 Protection
The venerable sporting goods chain, which had been trying to restructure itself in recent weeks, told its associates and vendors that a bankruptcy filing will be made either Sunday or early next week. Efforts to reorganize in recent weeks, which would have required the support of 90% of the vendor and landlord creditors, fell just short of what was needed, forcing the chain to go in a direction that it had been trying to avoid. No schedules have been filed at this point, but it has recently been receiving goods on a cash basis from vendors to lessen their exposure.
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