Firm logo- R 3M Law LLP
SPEAK WITH ONE OF OUR ATTORNEYS TODAY.
SPEAK WITH ONE OF
OUR ATTORNEYS TODAY.

Real World Solutions To Real World Challenges

Best Lawyers | Best Law Firms | U S News and World Report | 2016
Best Lawyers | Best Law Firms | U S News and World Report | 2017

R3M has been voted a Best Law Firm by US News & World Report and Best Lawyers

Best Lawyers | Best Law Firms | U S News and World Report | 2018
Best Lawyers | Best Law Firms | U S News and World Report | 2019
Best Lawyers | Best Law Firms | U S News and World Report | 2020
Best Lawyers | Best Law Firms | U S News and World Report | 2021
Best Lawyers - Lawyer Logo
Firm logo- R 3M Law LLP

Location

335 Madison Avenue, 9th Floor
New York, NY 10017

Toll Free: 877.373.6811
Fax: 212.913.9642
Map & Directions

close

Get Answers

A few weeks ago, we wrote about a sports equipment company, Golfsmith, going bankrupt. In that post, we talked about the declining popularity of golf, and how that has played a role in Golfsmith’s bankruptcy.

We bring this up because another sporting goods company recently filed for bankruptcy: Performance Sports Group. PSG is known for making Bauer hockey gear and Easton baseball gear. While it is unclear if the decline in hockey popularity over the last decade spurred PSG’s filing, it certainly appears that there were serious debts in play with PSG, and the company’s creditors were looking for PSG to comply with restructured loan provisions.

The bankruptcy for PSG has major implications for the company, obviously. One of the key elements about this particular case is that it is a “pre-packaged” bankruptcy. This is a streamlined bankruptcy process that is meant to be completed more quickly.  In a true “pre-packaged” filing, the company’s plan of reorganization must generally be agreed to in advance by the company’s creditors and shareholders.

In PSG’s case, one of the capital groups involved that has a stake in Adidas (which owns a rival company to Bauer) will become a stakeholder in the company if the plan of reorganization is approved. This will certainly need thorough vetting.

As you can see, companies that go through bankruptcy have the ability to manage their exit plans and prepare for the future. Bankruptcy does not have to be the “death” of a company.

Source: New York Post, “Sports equipment company to file for bankruptcy,” Josh Kosman, Oct. 30, 2016