Active Ride Shop, which is reorganizing in Chapter 11 proceedings, is being acquired by a group of Florida-based investors for $5.2 million. A limited liability company called Active Sports Lifestyles USA, run by real estate and hotel developer Issa Ladha, emerged as the winner among five bidders in an auction ordered by the Central U.S. Bankruptcy Court in California.
Garrick
Hollander, a lawyer for Active Ride Shop at Winthrop Couchot, said Ladha's
group plans to buy 20 of the company's locations although the number may be
less depending on lease negotiations. The sale also includes its Mira Loma
headquarters, warehouse and trademarks. The sale is expected to be completed
by the end of the month.
In the
seventies, Ladha owned wholesale garment companies that sold to retailers such
as JC Penney and Kmart, and also operated a number of stores under the Rani's
banner, according to court papers. In 1978, he started to diversify into real
estate and hotels and today operates single-tenant stores such as Walgreens,
Blockbusters and Pier 1 Imports. He also built a number of hotels and multiple
strip shopping centers in Florida.
Ladha said in court
papers that he intends to bring in Esmail Mawjee, who worked with him for 14
years during his time in the apparel business, to manage the Active
business. But Hollander also said Ladha has
indicated that he plans to retain John Wallace, CEO and
founder of Active Ride Shop, and his son, Shane, the company's
president, to continue to run the business.
Other bidders at the
auction were Zumiez, which had formally earlier said it bid up to $7.2 million
but Hollander said Zumiez bid included several contingencies. The remaining three bidders
were Nine Star, which operates two skate and surf stores in
Angeles
in
firm, Meleen and Company.
