The British Columbia-incorporated company behind the Bauer hockey skates and equipment brand said Oct. 31 that it had filed for bankruptcy protection in Delaware and Ontario.
Performance Sports Group (NYSE:PSG; TSX:PSG) is seeking to reorganize under Chapter 11 in the U.S. and the Companies’ Creditors Arrangement Act in Canada. Performance was hit earlier this year by the bankruptcy of big box sporting goods retailer The Sports Authority and it also lost out to Adidas in becoming the NHL’s uniform supplier. The Performance announcement disclosed a stalking horse asset purchase agreement with Sagard Capital and Fairfax Financial for US$575 million, and claims that it will be business as usual for now.
“The purchase agreement sets the floor, or minimum acceptable bid, for an auction under the supervision of the courts, which is deigned to achieve the highest available or otherwise best offer,” said the news release.
Performance missed its Aug. 15 deadline to file its annual financial report. It got a 60-day extension through Oct. 28, but also missed that deadline.
“The investigation [by audit committee-hired external experts] remains ongoing and the timing for finalizing the annual filings remains uncertain,” the release said.
