Performance Sports files for bankruptcy; rescue deal on table
- Wall St. stock futures fall after Italy referendum
- Oil tops $55 for first time in 16 months as OPEC deal fuels buying
- Consolidated Communications (CNSL) to Acquire FairPoint Communications (FRP) in $1.5B Deal
- Burberry rejects multiple takeover offers from Coach: Financial Times
- Trump picks ex-rival Carson to head housing department
A close-up view of the skates of Russia's Alexander Ovechkin at the 2014 Sochi Winter Olympic Games. REUTERS/Brian Snyder
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
By Matt Scuffham
(Reuters) - Performance Sports Group Ltd (NYSE: PSG) (NYSE: PSG), the maker of Bauer ice hockey gear, said on Monday it had filed for bankruptcy protection in the United States and Canada to facilitate a restructuring and sale of almost all of its assets.
The company, which also makes baseball bats and other sports equipment, said it would put its assets up for auction but already had a deal to sell nearly all of them for $575 million to an investor group led by Sagard Capital, its biggest shareholder, and Fairfax Financial Holdings Ltd (NYSE: FFH).
Reuters reported on Friday that Performance would file for bankruptcy with a buyer in hand and would seek out higher bids.
Former Performance Chairman Graeme Roustan told Reuters in August that he was working with investment banks to explore a bid for the company.
Performance's troubles highlight the challenges North American manufacturers face in the highly competitive sporting goods market.
The company listed assets of $500 million to $1 billion and liabilities of $500 million to $1 billion in its voluntary petition filed in Delaware under Chapter 11 of the U.S. Bankruptcy Code.
The company said it had begun proceedings under the Companies' Creditors Arrangement Act in Canada's Ontario Superior Court of Justice.
Performance said it expected operations to continue uninterrupted during the bankruptcy process, through a $386 million debtor-in-possession financing provided by existing lenders and the investor group.
The company also announced management changes. President Amir Rosenthal and Executive Vice President Todd Harman left on Friday. Dan Sills was named executive vice president, hockey, and Mike Thorne was appointed executive vice president, baseball/softball.
Jennifer Hughey was named senior vice president, supply chain.
(Additional reporting by Ismail Shakil in Bengaluru; Editing by Lisa Von Ahn)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- France's Sapin sees no euro risk from Italy
- Trump supports completion of Dakota Access Pipeline
- Iran's oil minister to attend OPEC, non-OPEC meeting in Vienna: SHANA
Create E-mail Alert Related CategoriesReuters
Related EntitiesSagard Capital Partners, Bankruptcy
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!