Iconic Sporting Goods Store To Make A Comeback After Going Bankrupt?
Olympia Sports officially when bankrupt in September of 2022; however, it was purchased by new owners and who could revive the brand in the months to come.
The conversation around the lifespan of brick-and-mortar stores gains fuel every time a major retailer closes its doors. However, bankruptcy proceedings can often lead to new beginnings for a brand. And now fans of Olympia Sports hope to get similar news soon.
Olympia Sports was a sporting goods store located in the northeastern United States. It got its start in 1975 in Portland, Maine. The popular retailer rapidly expanded.
By 2013, there were 230 locations. Then, between 2013 and 2019, Olympia Sports decided to shut down some of its unprofitable locations. Shortly after, CriticalPoint Capital acquired the company.
The acquisition process was not as smooth as one would hope. Once all the ink was dry on the papers, only 75 Olympia Sports locations remained. And the retailer was almost instantly impacted by the pandemic, along with every other store in the US.
While it was trying to recover from the restrictions and lockdowns, its parent company decided to try its hand at e-commerce. That experiment failed to generate the necessary profits. And by the summer of 2022, Olympia Sports started closing more stores.
The company declared bankruptcy to help protect the remaining employees during the liquidation. While that was good news at the moment, it didn’t last long. Olympia Sports officially went out of business at the end of September 2022.
But the good news for loyal customers is that bankruptcy proceedings don’t necessarily mean the end of a brand. Other brands, like Sharper Image and Toys R Us, have made a comeback. They may not look exactly like they did before bankruptcy, but the familiar names are still around.
According to The Street, “There’s value in the familiar and that makes well-known brand names, even ones that failed, have major value.” And someone may soon get the chance to see if that holds true for Olympia Sports. The next step in bankruptcy proceedings is coming up.
And that step is an auction. The intellectual property (IP) of Olympia Sports will go up for auction. The IP includes the company’s trademarks, domain names, customer information, image library, and its name.
So, theoretically, an investor can purchase the entire package and revive the brand as they see fit. The company may have a comeback, though in an entirely different form. However, that is not the only possible outcome of the auction.
When a company goes bankrupt, its assets can get sold as a whole entity. But they can also get split up and purchased separately. The company handling the sale is Hilco Streambank.
“A buyer of Olympia’s intellectual property has the opportunity to leverage a brand known for its quality and reliability when it comes to sporting goods, equipment, and accessories, and to engage with a customer base seeking a trusted outlet for its sporting goods needs”, says Hilco’s Senior Vice President Richelle Kalnit. The firm will accept offers until February 7. And the auction will officially commence on February 9.
Any sale, whether whole or partial, has to receive final approval from the US Bankruptcy Court for the District of Delaware. So keep your eyes peeled later this year. Olympia Sports may make a comeback.
