Huffy Corporation has filed a motion in U.S. Bankruptcy Court seeking permission to sell a number of its Hockey and Action Sports brands and assets to Forzani Group Ltd. in a deal worth $1.6 million. The Hespeler hockey brand and the Rage, Dukes, Skate Attack, and Ultra Wheels brands were once part of the Gen-X business that Huffy acquired in December 2002. This should leave only the Snowboard brands left as part of that original deal. Previous Gen-X owner Jamie Salter re-acquired the Gen-X gray market closeout business in March of this year and then quickly flipped it to Forzani. Salter now runs the wholesale businesses for Forzani.
Huffy said it will solicit higher or better offers for these assets as par tof the bankruptcy auction process. Competing bids must be submitted by no later than December 8, 2004 with a sale auction to be held on December 10, 2004. A U.S. BK Court hearing to approve the sales will be held on December 14, 2004.
Huffy Corp. also filed papers with the court that they currently have a deal on the table to sell the Sims, Lamar, and LTD snowboard brands for $840,000, the Ultra Wheels in-line skate brand for $240,000, and the Oxygen, Rage, and Dukes skateboard brands for a total of $42,800. Higher bids will be sought at a hearing on November 29, 2004 to approve the sales.
“The company determined to reorganize around the core businesses of bicycles and golf products,” Donald Mallory, Huffy’s lawyer, said in court papers. “The sale fits within the business reorganization strategy.”
