Performance Sports Group, owners of the Bauer Hockey brand, as well as the recently acquired Easton Hockey brand, have officially filed for bankruptcy today.
Speculation of the hockey equipment manufacturer’s impending bankruptcy took place all weekend, with Reuters first sharing the news that PSG was preparing to file last Friday.
According to a fresh report from Reuters today, Performance Sports Group filed for bankruptcy protection in both the United States and Canada in order to “facilitate a restructuring and sale of almost all of its assets.”
The article also indicates that PSG will auction off their assets, but also noted that they “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. This will come in as the leading offer if the assets are to head to auction.
Performance Sports Group CEO Harlan Kent released a statement today in which he said “The agreement we have reached with Sagard Capital and Fairfax Financial is a testament to their confidence in the future of our business and all of our great brands. We believe that pursuing a sale through a court-supervised restructuring process represents the best path forward for our customers, vendors, retail and business partners, employees and other stakeholders.”
The shocking news might spell trouble for Bauer athletes on endorsement deals such as Patrick Kane, Alexander Ovechkin, and rookie sensation Auston Matthews. As part of the bankruptcy, the endorsement deals for these Bauer athletes may be canceled.
According to a recent TSN article, Ovechkin, Kane, and Jonathan Toews are each paid between $300,000 and $500,000 per year for their contracts with Bauer. Matthews, on the other hand, has a contract closer to $200,000 per year.
How can Bauer not make be profitable? Every kid/adult in recreational hockey has their gear,not to mention the basically free advertising by all the NHL players. 3-5 hundred thousand for the worlds best players may as well be zero.(see Steph Curry & Bryce Harper Under Armour deals.Lebron James Nike etc.) Other then gross mismanagement,and I mean real incompetence,how do the new owners think matters from a sales and expourse standpoint could get better? Let’s face it, right now Bauer the brand owns the hockey market at every level.
Well said Brian, and gear lacks quality in the equation to on purpouse I Guess. Not like in the good old days. Tobad jofa sold there hockey departement to ccm bevakar ccm only wanted to buy market shares. Perhaps PSG lost on other areas