Modell’s begs landlords to help it stave off bankruptcy

Fourth-generation sporting goods retailer says rent cuts needed to save 2,900 jobs

New York /
Feb.February 26, 2020 09:30 AM
Modell's CEO Mitch Modell and a Modell's store in Brooklyn (Credit: Getty Images, Wikipedia)

Modell’s CEO Mitch Modell and a Modell’s store in Brooklyn (Credit: Getty Images, Wikipedia)

Modell’s Sporting Goods is renegotiating leases in a last-ditch effort to avoid bankruptcy.

The 130-year-old retailer, which has more than 150 locations across 10 states, sent letters to 19 landlords pleading with them to “dig deeper” so the retailer can avoid filing for bankruptcy March 1, the New York Post reported.

So far pledges of help have come from owners of buildings where five stores have launched liquidation sales. More than 2,900 jobs depend on the retailer avoiding bankruptcy.

“These people are counting on me; some have been with me for 40 years,” Mitch Modell, who is the retailer’s fourth-generation leader, wrote in a letter to landlords, according to the Post.

It is the latest effort by Modell to save his family business. Last May, The Real Deal reported that the retailer was trying smaller concept stores — between 5,000 square feet and 8,000 square feet. The plan was to roll out in 10 locations across New York.

Earlier in 2019, Modell’s listed its 300,000-square-foot Bronx warehouse for $100 million. [NYP] — David Jeans


Related Articles

arrow_forward_ios
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Ty Warner and Four Seasons 57 East 57th Street (Getty, Google Maps)
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
CRE held up through the pandemic far better than most expected (iStock)
How commercial real estate survived the pandemic
How commercial real estate survived the pandemic
Retail availabilities decreased, but leasing increased in the third quarter (iStock, Wikimedia, LoopNet)
Manhattan retail market ticks up, indicating slow recovery
Manhattan retail market ticks up, indicating slow recovery
260 North Avenue East in Westfield NJ (Google Maps)
Union County shopping center sells to Adoni Group for $19.2M
Union County shopping center sells to Adoni Group for $19.2M
Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...