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November 16, 2018 – Advanced Sports Enterprises, Inc. (“ASE” or the “Company”) and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Middle District of North Carolina, lead case number 18-80860. The Company, which designs, markets and sells premium bicycle brands through a distribution network that reaches 80 markets around the globe, is represented by John A. Northen of Northen Blue LLP. Further board-authorized engagements include Flaster/Greenberg P.C. as counsel, Clear Thinking Group, LLC as financial advisors, D.A. Davidson, & Co. as investment bankers and Gordon Brothers Retail Partners as consultants and A&G Realty Partners, LLC as lease consultants. ASE’s petition notes between 1,000 and 5,000 creditors; estimated assets between $50 million and $100 million; and estimated liabilities between $100 million and $500 million. Documents filed with the Court list the Company’s three largest unsecured creditors as (i) Aaron Corporation ($263,036.15), (ii) Bluesky Technology Partners, I ($207,248.25) and (iii) Castelli USA ($196,370.00).
In a declaration in support of the Chapter 11 filing (the “Cunnane Declaration”), Patrick Cunnane, the President and Chairman of the Board of ASE outlined the goals of the Chapter 11 as follows, “The Debtors’ Chapter 11 strategy currently consists of the following modes: (i) stabilizing and financing the on-going business operations of the Debtors; (ii) conducting store closing sales that lead into the prompt rejection of underperforming stores; (iii) rejecting burdensome trademark licenses to maximize the market value of the brands; (iv) implementing a real estate optimization process for the remaining profitable retail locations and (v) initiating an expedited formal bid and auction process to sell all or portions of the Debtors’ assets (most notably inventory, retail operations and/or intellectual property) to interested bidders.”
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