Copeland Sports given court OK of $21.7 million sale of substantially all assets

New York, Nov. 17 - Copeland Sports received court approval of the proposed $21.7 million sale of substantially all of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The winner - and stalking horse bidder - is a joint venture between Sports Authority, Hilco Merchant Resources, LLC and Hilco Real Estate, LLC, with a $21.7 million bid.

The stalking horse bid is predicated on a $23 million total cost value of inventory, with adjustments up or down at 80 cents for each dollar of deficiency below $22 million.

According to its motion proposing the sale, Copeland said the performance at the stores not covered under the order approving going-out-of-business sales for some of Copeland's locations has been disappointing, partially because major suppliers Nike and Titleist are not supplying products to the remaining stores.

As a result, the company decided a sale of substantially all of its assets was appropriate to offset the risk of further diminishment of the bankruptcy estates.

Copeland Sports said one condition of the sale is that it close before the busy Thanksgiving holiday shopping period.

Copeland, a San Luis Obispo, Calif., regional specialty sporting goods retailer, filed for bankruptcy on Aug. 14. Its Chapter 11 case number is 06-10853.

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