Retail Ecommerce Ventures, LLC (REV), a capital marketing company founded in 2019 and that acquired the intellectual property of Modell’s Sporting Goods, Pier 1 Imports, RadioShack, and other retail banners, hired Kirkland and Ellis to explore restructuring options, including a bankruptcy, according to the Wall Street Journal.
The WSJ reported that REV paused payments on its debts, citing a recent lawsuit filed by a vendor this week. According to a Bloomberg report, the company is also considering pledging the intellectual property of some of its brands to raise money.
REV acquired the rights to several distressed chains’ intellectual property with a plan to focus the acquired businesses on e-commerce. The company has said its “mission is to transform iconic legacy brands into e-commerce success stories.”
Other holdings of REV include Tuesday Morning, Bodybuilding.com, Wilhelmina, Dressbarn, Ralph & Russo, Stein Mart, Linen n’ Things, The Franklin Mint, The Book People, Mentorbox, A Farmer’s Market, and Mosh.
A source told the New York Post that REV’s debt totaled approximately $200 million, with revenues and losses of about $60 million in 2022 versus about $150 million in sales and about $90 million in losses in 2021.
