Maurice Sporting Goods Inc.

• 11/20/17 Recap: Another retailer with a deep legacy in this country has filed for bankruptcy. The plan is to sell to Middleton Management Company LLC, which has entered into a letter of intent with the company. We bet its for a fire sale price. But, first, let's take a step back: here, an Illinois-based manufacturer and distributor of 60,000 SKUs of outdoor sporting goods (fishing products, terminal tackle products, shooting sports accessories, etc.) has filed for bankruptcy, potentially leaving its relationship with its single largest customer, Walmart ($WMT), in limbo. The company blamed its debt (some of which was taken on to fund an acquisition spree from 2004-2011), a cost-overrun investment in a new state-of-the-art combined distribution center, the general retail environment, and dominoes. Wait, what? Dominoes? From the First Day Declaration, "The Debtors have also faced losses as a result of the recent bankruptcies of several retailers, including The Sports Authority, MC Sports (also known as Michigan Sporting Goods Distributors), Gander Mountain and Sport Chalet, and a generally challenging retail environment." We'd start the funeral dirge for sporting goods, generally, but earlier this week Hibbett Sports Inc. ($HIBB) reported earnings and surprised to the upside. Today, alone, the stock was up 13.74%. And Dick's Sporting Goods Inc. ($DKS) was up 1%. So have no fear kids: there are still gonna be physical places where you can check out some tackle products and, gulp, maybe shooting sports accessories...??
• Jurisdiction: D. of Delaware (Judge Sontchi)
• Capital Structure: $45mm debt (BMO Harris)    
• Company Professionals:
  • Legal: Young Conaway Stargatt & Taylor LLP (Robert Brady, Michael Nestor, Justin Rucki, Ashley Jacobs, Tara Pakrouh)
  • Financial Advisor: Portage Point Partners
  • Investment Banker: Livingstone Partners
  • Claims Agent: Epiq Bankruptcy Solutions LLC (*click on company name above for free docket access)
• Other Parties in Interest:
  • BMO Harris
    • Legal: Vedder Price PC (Douglas Lipke) & (local) Pepper Hamilton LLP (David Stratton)

Updated 11/23/17