With no new bids arriving, Performance Sports Group Ltd on Thursday said it would seek approval from a U.S. bankruptcy court for the sale of its assets to Sagard Capital Partners LP and Fairfax Financial Holdings Ltd.

At the time of the company’s bankruptcy filing in October, Sagard, Performance’s biggest shareholder, and Fairfax had agreed to act as “stalking horse” bidders to buy most of the Bauer ice hockey gear maker’s assets and its North American units for $575 million. A “stalking horse” bid is an opening offer that other interested bidders must surpass if they want to buy the company.

The auction was eventually scheduled for Jan. 30 but will not be held as no qualified bids were submitted by the deadline of Jan. 25, said Performance Sports Group.

Performance Sports Group said it would seek the approval of the courts for the sale at the final sale hearing, scheduled for February 6. The closing is expected to occur on or about February 23 and no later than February 27.

The business being sold includes Bauer, Mission, Maverik, Cascade, Combat and Easton brand names. Earlier this week, the company received court approval to sell Inaria, the manufacturer of soccer uniforms, apparel and equipment, back to Saverio Michielli, the brand’s founder, for $1.58 million.

The sale to Sagard Capital and Fairfax Financial, two of Canada’s largest financial groups, comes amid wide speculation about the arrival of other possible suitors. A Street.com report in early December said at least five private equity firms were considering making a bid. The prospective buyers include KKR, Bain Capital LP, Apollo Global Management, TPG Capital and Sycamore Partners.

Former PSG chairman Graeme Roustan was also said to be seeking a financial partner to make a bid. Roustan, who led the spinoff of Bauer from Nike in 2008 to create the company, was pushing for the Canadian Competition Bureau (CCB) to look into Sagard’s ownership of Power Corp., a diversified Quebec-based international management company with interests in financial services, communications and other sectors. The conflicts could include any business relationships with Adidas AG, which owns CCM.

Performance Sports Group has struggled over the last two years with debts absorbed to acquire Easton’s baseball and softball business for $330 million in 2014, as well as a downturn in its baseball and hockey businesses. The baseball category was significantly impacted by the Chapter 11 filing of Sports Authority and the bankruptcy of an internet baseball retailer, Team Express.

In hockey, the consolidations in the U.S. with the August 2016 acquisition by Pure Hockey of Total Hockey that followed Total Hockey’s acquisition in 2015 of Players Bench, as well as the bankruptcy of Total Hockey in July 2016, led to lower hockey orders as its retail customers focused on reducing their inventory levels. The depreciation of the Canadian dollar and an investigation into accounting irregularities that included the SEC also stymied turnaround efforts.

With the sale to Sagard Capital and Fairfax Financial, the company can continue restructuring efforts initiated by Harlan Kent, who was hired as CEO in June 2016. Kent, formerly from Yankee Candle, has initiated several streamlining and cost-cutting measures, including layoffs and the consolidation of the company’s baseball/softball category under its existing Easton operations in Thousand Oaks, CA.

“The agreement we have reached with Sagard Capital and Fairfax Financial is a testament to their confidence in the future of our business and all of our great brands,” Kent said at the time of the bankruptcy filing.

Paul Desmarais III , executive chairman of Sagard Capital, added at the same time, “As long-term shareholders, our goal is to support PSG’s management in preserving and growing the value of PSG’s market-leading franchises to build a strong, successful business.”

Photo courtesy Bauer