Adams Sells Remaining Brands to Schutt, Starts Liquidating

Schutt Sports acquired the Adams, Trace, Bolco Bases, Neumann Gloves and Bucks Belts brands and accompanying spring 2015 inventory last week, in a deal that clears the way fro Adams USA Inc. to liquidate.

Adams USA Interim CEO Tom Haas told Sports Executive Weekly Friday that Schutt Sports has hired Adams USA’s former sales manager John Bartlett and his 24-member rep force to revitalize and manage the four brands going forward.

The sale marked Adams USA’s second asset sale to Schutt Sports since 2011, when Adams USA sold its football helmet manufacturing business to the company, but retained rights to sell other team gear and apparel under the Adams name. 

“The Adams brand has been around more than 50 years and there is tremendous residual brand loyalty,” said Haas, a managing director with BlackBriar Advisors, a Dallas-based consultancy that specializes in turning around middle market companies.

Adams USA majority shareholder Ray Abel and his silent partner hired BlackBriar earlier this year to review the company’s strategic options.

“The company had not fared well from a profit standpoint for several years and after our assessment the conclusion was drawn on behalf of the two major shareholders and other stake holder to close the operation in an orderly manner,” said Haas, who stepped in as Adams USA CEO in April.

Adams USA has hired Liquid Asset Partners LLC to liquidate inventory and machinery at its 200,000-square-foot factory in Cookeville, TN. The inventory includes baseball helmets, gloves, catchers masks, T-ball stands, sliding shorts, knee guards, football masks, gloves, jerseys, mouth guards, girdles, shoulder pads, knee pads and referee gear. The merchandise ranges from band new to about two years old, said Haas.

Liquid Asset Partners LLC CEO Bill Melvin puts the dealer cost of the assets at approximately $13 million.
In a Nov. 7 press release, Melvin described the factory sale as a “once-in-a-lifetime opportunity” for schools, parents and sport goods retailers to save on gear for the upcoming year season.

“Especially since the discounts will be taken off Dealer Price and continue to increase until everything is sold,” Melvin said. “A sale of this magnitude is unprecedented in state history. It will be the kind of sale people talk about for years to come.”