Modell’s Sporting Goods has hired real estate adviser A&G Realty Partners for a lease-renegotiation effort, according to a report from Debtwire.
“It’s definitely not uncommon, or unique to Modell’s,” Acharya told Retail Dive in an interview about the hiring of A&G Realty. “It makes sense when the environment is tough that you would bring in people to help you and find the best solution. I think the most important thing is the rental payment outlook and that it’s an example of what’s going on in the space, the continued distress in retail and the competitive sporting goods space.”
The reported hiring of A&G Realty comes after the Wall Street Journal reported on March 11 that Modell’s had retained a restructuring firm and was possibly exploring a bankruptcy filing. Modell’s later indicated that it had retained Berkley Research Group (BRG) only for consulting purposes. A second article that ran on April 28 in the Wall Street Journal showed that Modell’s has regained shipments from the wide majority of its vendor base following concerns after the initial report.
Mitchell Modell, CEO, recently told SGB Executive that leases will be reviewed as they come up for renewal but he agreed that like many other retailers, Modell’s would be more closely analyzing leases given the challenges facing overall retail. Said Modell, “In over 45 years I’ve never seen turbulence like this.”
