On Monday, a bankruptcy court judge approved holding
an auction for Schutt Sports and its assets on Dec. 14. Bids for the
company are due Dec. 10. As reported, Schutt Sports, in bankruptcy
proceedings since Sept. 6, last week received an offer from Kranos
Intermediate Holding Corp. to acquire the company for $25.1 million.
Kranos, a Delaware-based company, will act as act as a “stalking horse”
bid to entertain other offers in bankruptcy court. Schutt was required
to find a stalking horse bidder as part of the terms of its final $34
million debtor-in-possession arrangement with Bank of America.
Schutt filed for bankruptcy protection in Delaware one month after being hit
with a $29 million patent infringement verdict. The filing was designed
to halt enforcement of the patent verdict won by rival Riddell Inc., as
well as related litigation, as it decides whether to pursue a sale or
reorganization.
Riddell had filed a motion with the bankruptcy court to block the
auction, claiming a sale could affect its ability to collect on the $29
million verdict. The bankruptcy judge ruled against Riddell's motion.
The company had sales of $68.6 million for its 2009
fiscal year, it said in its most recent court filing.
Founded in 1918, Schutt Sports makes baseball, softball and football
equipment and has 400 employees in Litchfield and Salem, Ill., and in
Easton, Pa. It is the exclusive provider of bases for Major League
Baseball and is one of the largest manufacturers of helmets and face
guards for the National Football League.
