Copelands' Enterprises, Inc. has entered into a definitive asset purchase agreement with a joint venture composed of The Sports Authority, Hilco Real Estate, LLC and Hilco Merchant Resources, LLC. Under the agreement, The Sports Authority is to acquire seven to thirteen of Copeland's current 20 retail store locations. Hilco Real Estate, which has acquired certain lease designation rights, is expected to acquire or remarket the retailer's remaining leases.
Together with the Sports Authority, Hilco Merchant Resources and Hilco Real Estate collectively structured, financed and facilitated the strategic transaction, and will also manage the disposition of unwanted assets.
Copelands, which is operating under Chapter 11 of the Bankruptcy Code, plans to immediately seek Bankruptcy Court approval of the agreement. The sale will be subject to court approval, a court-supervised auction sale, and other conditions to closing.
Copelands saidit believes The Sports Authority plans to retain many of the current employees working at the Company's retail stores. In their view, the proposed sale is the best available means of keeping as many of its facilities open as possible. Sale of its business as a “going concern” should maximize the value of its assets and operations for the benefit of its creditors and help preserve jobs for company employees. F
ollowing its bankruptcy filing, Copelands found itself unable to continue to operate when key vendors proved unwilling to ship the new merchandise needed to support sales at the retailer's stores.
