Modell’s Sporting Goods efforts to avoid bankruptcy have apparently failed.
The New York-based athletic gear retailer is prepping to file for Chapter 11 bankruptcy protection, reported the New York Post. Modell’s has stopped shopping for a white-knight investor as it scrambles to renegotiate its 140 leases across the New York metro area, company CEO Mitch Modell told the Post. It is also giving up on renegotiating terms with its vendors.
Modell’s is hoping that Denver-based sportswear retailer JackRabbit will buy it out of Chapter 11, according to the report, which cited a source with knowledge of the situation. Modell himself did not comment on whether the company is in discussions with JackRabbit. He told the Post that “a lot of companies are taking a look at us.”