Modell’s Sporting Goods
Modell’s Sporting Goods, Inc. retained Hilco Streambank to sell its intellectual property assets during its chapter 11 case. These assets included the Modell’s trademarks, domains, customer data, social media assets, and the “Gotta Go To Mo’s” jingle.
Founded in 1889 by Morris A. Modell, the company was the oldest, family-owned and operated retailer of sporting goods, athletic footwear, active apparel and fan gear. The brand expanded in its core markets with over 150 retail stores across the Northeast and Mid-Atlantic states. The Modell’s customer was highly engaged in sports related activities and with local and regional professional sports teams.
Modell’s filed for bankruptcy shortly before the COVID-19 pandemic reached the United States. Its retail going out of business sales were halted due to the pandemic, but Hilco Streambank nevertheless promptly commenced a marketing campaign for the Modell’s intellectual property assets, which was met with significant interest from prospective buyers. As the marketing process progressed, a stalking horse bidder emerged, resulting in the negotiation and execution of a stalking horse agreement with Modell’s Sporting Goods Online, Inc. for $1,965,000. Following an auction at which there were 14 rounds of bidding from three bidders, including the stalking horse bidder, the stalking horse was declared the successful bidder. The successful bid, valued at $3,640,000, reflected a $1,675,000 increase over the stalking horse bid. Working with the company and its advisors, Hilco Streambank closed the deal with Modell’s Sporting Goods Online, Inc., which intends to relaunch an ecommerce platform.