Copelands Enterprises, Inc. filed for voluntary Chapter 11 Bankruptcy in the U.S. Bankruptcy Court, District of Delaware. The company, which also does business under the Copelands Sports and ShopSports.com banners, listed assets of $50 million – $100 million with outstanding debt listed in the same range. There are between 1,000 and 5,000 creditors involved in the filing. Copelands estimated that there will be funds available for these creditors in the future.
In connection with the Bankruptcy, Copelands has hired The Clear Thinking Group to provide consulting services and the law firm of Pachulski, Stang, Ziehl, Young, Jones & Weintraub to represent the company during Chapter 11 proceedings. Copelands will also enter into a DIP facility with Wells Fargo Retail Finance and “certain other parties.”
The largest unsecured creditor is Nike USA, Inc., which is owed nearly $1.7 million, while Copelands holds a trade debt with Callaway Golf of nearly $1 million. Other creditors listed include Sole Technology, New Balance, Taylor Made, Titleist Golf, and adidas America. The companys top 25 creditors are owed roughly $10.7 million.
The only equity stake holders in the company are Thomas and James Copeland, who own equal shares of the common stock, series A preferred stock, and series B preferred stock.
Copelands simultaneously filed several motions with the Delaware Court designed to keep the business running while it goes through these proceedings, including a motion to continue paying employee wages and a motion for debtor in possession financing.
