The B.C.-incorporated parent of the Bauer Hockey brand announced a new deadline for its delayed annual report on August 30.
A Performance Sports Group (PSG) news release said the company amended its asset-backed revolving credit facility and secured term-loan credit facility. That meant it had a 60-day extension to file its annual report.
The Exeter, New Hampshire-headquartered company (NYSE:PSG) (TSX:PSG) issued a news release on August 15 announcing that its audited financials for the year ended May 31 would not be filed by that day’s deadline. It cited the decision by its audit committee to conduct an internal investigation of its financial statements. The shock announcement raised the possibility of a default, as the company revealed that it was in negotiations with lenders.
PSG admitted in a subsequent statement filed with the U.S. Securities and Exchange Commission that it was under SEC investigation and had been named in a shareholder class-action lawsuit pending in the U.S. District Court for the Southern District of New York.
PSG had been hit with a double-whammy on both sides of the border: Canada’s slumping dollar and the Chapter 11 bankruptcy of U.S. national sporting goods retailer Sports Authority. The Colorado-based chain racked up $1.1 billion in debt and announced in May that it would sell or close 140 stores — one-third of its chain.
PSG spokesman Steve Jones did not respond to a query from Business in Vancouver.
