Dive Temporary:
- Olympia Sports’ mental assets is up for sale soon after the Maine-primarily based sporting merchandise retailer filed for Chapter 11 personal bankruptcy in September, in accordance to a information release shared with Retail Dive.
- Hilco Streambank, an advisory agency that specializes in Chapter 7 and Chapter 11 individual bankruptcy cases and intellectual residence inclinations, is dealing with the sale. Hilco is trying to get features through Feb. 7 and plans to just take the IP to auction on Feb. 9. Even so, the sale is issue to the approval of the U.S. Bankruptcy Courtroom for the District of Delaware.
- The IP of two other brand names, Clever Teaching and Surf Clothing store, is also for sale, along with buyer information and area names.
Dive Perception:
Olympia Sports went out of organization in September 2022 just after 47 decades.
Founded in 1975 in South Portland, Maine, Olympia bought sporting activities devices, physical fitness gear and attire, athletic shoes, casual don and athletic extras. At the time of its closure, the corporation experienced a footprint of about 35 retailers and 324 workforce.
At its peak in 2012, Olympia Sports activities experienced 230 suppliers in New England and the mid-Atlantic. Nevertheless, the company’s advancement and success started to stall following that. In response, Olympia Sporting activities closed unprofitable retailers among 2013 and 2019 as leases expired.
Soon after an acquisition by non-public fairness company CriticalPoint Money in 2019, Olympia’s brick-and-mortar footprint shrank to 75 shops. That offer marked the get started of a time of turbulence at the corporation. In April 2022, Olympia decided to liquidate 22 merchants to create funds move, the organization said in court files. Inspite of various turnaround efforts, Olympia ultimately filed for bankruptcy just in advance of 2022’s fourth quarter.
Olympia Sports activities generated $65.2 million in retail and $9.8 million in e-commerce product sales in 2021. Gross revenues that 12 months were about $74 million with a destructive EBITDA of about $1.5 million. As a result of July 31, 2022, Olympia’s gross revenues were about $28 million with a unfavorable EBITDA of $7.8 million, the organization reported in court filings.
Revenue of intellectual residence can generate tens of tens of millions — or even hundreds of tens of millions — of bucks, and possibly provide defunct brand names back to daily life. In the last decade or so, some of the properly-known IPs on the sector incorporated Toys R Us, Circuit City and Pier 1. Hilco also dealt with the modern sale of Stein Mart’s mental assets.
In Olympia’s circumstance, the assets out there for sale involve trademarks, consumer info for 640,000 people, an owned impression library, and a lot more than 50 area names, such as OlympiaSports.internet, CleverTraining.com, SurfOutfitter.com, RunColorado.com and ClothesBuy.com. Hilco said the property can be marketed individually or as a deal.
“Olympia Sports has been a staple of the Northeast for many years and has garnered a loyal client foundation like more than 415,000 clients who have built a obtain in the very last two a long time,” Hilco Streambank Senior Vice President Richelle Kalnit explained in a information launch shared with Retail Dive.
“The successful enlargement into e-commerce contributed to retail and e-commerce mixed income of more than $61 million in 2020 and $75 million in 2021,” Kalnit continued. “A purchaser of Olympia’s mental assets has the prospect to leverage a brand name regarded for its excellent and dependability when it arrives to sporting merchandise, machines, and add-ons, and to engage with a consumer base in search of a reliable outlet for its sporting goods requirements.”
Olympia’s e-commerce site OlympiaSports.net created extra than 16.3 million visits in between January 2020 and Could 2022. But due to delivery fees and levels of competition, e-commerce “turned out to be an unprofitable venture” for Olympia, in accordance to bankruptcy-related court docket documents. Olympia ended its e-commerce functions in April 2022.
CleverTraining.com was an e-commerce specialty retailer. It centered on offering higher-overall performance athletic education gear for lively way of living lovers. SurfOutfitter.com provided a hand-chosen assortment of attire, tools, and extras that catered to men and women in the surf and waterman life. Surf Clothing store also operated one retail store in Tampa, Florida. Clever Training’s peak income attained $11.8 million, when Surf Clothes shop recorded $2 million in 2020, Hilco mentioned.
“The further specialty retail models add special benefit to the featuring,” Kalnit reported. “Each a single has gained a standing as a reliable chief in its respective specialized niche, with a strong heritage of find, superior-high quality product traces, representing communities that are dedicated to these passions and lifestyles.”
