Performance Sports Group, Ltd, is a hockey performance gear behemoth. The company owns both Bauer hockey and Easton hockey, making up a large section of the hockey gear market.
Now, though, they seem to be in a bit of financial trouble.
Reports have come out this weekend that Performance Sports Group is planning to file for bankruptcy as early as Sunday evening, as first broken by Reuters. Based on the report, the company — who are reportedly already looking at a sale offer on the table — seem to be planning to seek out higher-dollar offers through a bankruptcy auction if need be.
From the Reuters report:
“Canadian alternative asset manager Brookfield Asset Management (BAMa.TO) and investor Sagard Capital Partners LP, a unit of Power Corp of Canada (POW.TO), said this week they were exploring a deal with Performance Sports. In a separate filing, Sagard said that it was also working with Canadian investment firm Fairfax Financial Holdings Ltd (FFH.TO) on a deal for the manufacturer.
Performance Sports and Sagard Capital declined to comment. Brookfield and Fairfax did not immediately respond to requests made outside office hours for comment.”
The problems seem to be brewing from missed payments on two major loans for Performance Sports, which are reported to amount to “a term loan for $450 million, of which $330.5 million was drawn in February, and an asset-based revolving credit line of $200 million, which had $119.2 million drawn at the same time.” The company is seeking extensions on the loans, which explains the delay in bankruptcy filings, but that may not be an option.
Performance Sports, formerly owned by Nike Inc, make up a massive chunk of the market for hockey performance gear. Bauer serves as the sponsor for a number of high-profile NHLers, including Auston Matthews, Henrik Lundqvist, Tyler Seguin, Steven Stamkos, and Patrick Kane.
If they’re in financial distress, there’s no telling yet exactly how this will impact the NHL and the hockey community in general, but it’s safe to assume that this situation won’t be going away any time soon.