Sports Direct has secured the purchase of bankrupt sporting goods company Eastern Outfitters for a price tag worth at least $30 million.
The English sporting goods retail chain last month made a bid during a bankruptcy auction for substantially all of Eastern Outfitters assets, including the assets of its affiliate sporting goods retailers Bob’s Stores and Eastern Mountain Sports and Sports Chalet.
The bid, which came from Sportsdirect.com Retail Ltd., is made up of $500,000 in cash and a $29 million credit bid, along with the full payoff of Eastern’s first lien financing obligations, which are unspecified.
Sports Direct acted as the stalking horse bidder for the assets, and discussions for a sale were already under way by the time Eastern filed for bankruptcy protection in early February.
A Delaware bankruptcy judge approved the sale on Wednesday, finding Sports Direct’s offer to be the “highest and best” bid for the assets. The transaction should close in the coming weeks.
Representatives of either party could not be reached for comment.
Last week, Eastern also received approval to begin store closing sales at 27 Eastern Mountain locations and 21 Bob’s stores locations, with a joint venture of Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC overseeing the liquidation process.
Together, Eastern Mountain and Bob’s operate about 80 locations.
Eastern was formed as a holding company less than a year ago by private equity firm Versa Capital Management LLC, which in late 2012 purchased Eastern Mountain and combined it with the Bob’s operations.
The shuffling off Eastern Mountain and Bob’s came after Versa sent its Vestis Retail Group into Chapter 11 in April 2016. While both retailer’s survived that bankruptcy, another member of the group, Sports Chalet was shut down entirely.
Sports Direct also scooped up some leftover intellectual property assets with its purchase related to Sports Chalet, including its domain name.
For More WWD News, See: