|
Modell's Sporting Goods
Modell's Sporting Goods Online, Inc. is an online sporting goods and related apparel retailer. Modell's began with operating retail stores between the late 1980s and the late 2010s.[1][2] In 2020, Modell’s became a brand owned by the private equity firm Retail Ecommerce Ventures.[3] History The chain was founded as a single store by Morris A. Modell in 1889 in Manhattan, making it possibly the third oldest sporting goods store in North America (after James F. Brine's in Massachusetts and Milwaukee's Burghardt Sporting Goods).[4] Modell, a Jewish immigrant from Hungary, opened the first location on Cortlandt Street in Lower Manhattan[2] (the Modell pawn shop chain in Manhattan and Brooklyn was founded by Morris's brother George in 1893 as a spinoff. The two companies operate separately). Through the years, it has remained a family-owned business, passing through four generations of the Modell family. While best known as a sporting goods retailer, Modell's also operated a chain of "full-line" discount retailers in the New York-metro area known as "Modell's Shopper's World" (and for a short time as "White-Modells") from the mid-1950s up until 1989, when the company decided to focus on its sporting goods operations partly due to increased competition in the discount retail market.[5] William Modell, who became chairman in 1985, also founded the Crohn's and Colitis Foundation along with his wife, Shelby Modell.[6] Modell's at one time operated 152 stores[2] mainly in New York, New Jersey, and Pennsylvania, in addition to also having a presence Delaware, Maryland, Virginia, the District of Columbia, Connecticut, Massachusetts, and New Hampshire. It also operated a flagship store which was located at 234 West 42nd Street near Times Square. CEO Mitchell Modell was featured on an episode of Undercover Boss that aired on November 2, 2012, in which he went in disguise into his own stores to see things from an employee point of view.[7] Two years later, he was accused in a February 2014 lawsuit by rival Dick's Sporting Goods of entering a Dick's store in disguise to gain access to their retail secrets.[7] The lawsuit was quickly settled out of court on undisclosed terms by April. Independent retail analysts and attorneys suggested that Modell visited the store on a whim, rather than as part of some plot to steal information.[8] In February 2020, the company announced that they would shutter 24 underperforming stores in effort to stave off bankruptcy. The company also announced that they have hired financial advisers following a disappointing 2019 holiday season. They also have stopped paying a unspecified number of landlords and some of its vendors and has started discussions with suppliers in another effort to prevent losing any further cash.[9] However, it wasn't enough to save the company, and on March 11, 2020, Modell's Sporting Goods declared Chapter 11 bankruptcy protection, and announced it would permanently shutter all of its remaining stores. However, liquidation sales were disrupted due to the COVID-19 pandemic forcing all brick and mortar stores to temporarily close. Once Modell's locations began reopening, liquidation sales continued, and all stores were shuttered by the end of August 2020.[10][11] On August 20, 2020, all of the company's assets was acquired by Retail Ecommerce Ventures for $3.6 million, and they announced that the company would be coming back as a digital-only brand.[12] In March 2023, Retail Ecommerce Ventures announced that it would be exploring options in effort to save themselves, including a potential Chapter 11 bankruptcy filing, which would mark Modell's second bankruptcy in 3 years. They have also hired restructuring lawyers in effort to stave off bankruptcy.[13] Local sports affiliationsModell's had local specialized offerings and programs such as Team Weeks, which assists local schools, leagues, and non-profit organizations. Modell's sponsored many professional sports teams in their U.S. East Coast market area, including the Baltimore Orioles, Baltimore Ravens, Boston Bruins, Boston Celtics, Brooklyn Nets, New York Mets, New York Yankees, New York Giants, New York Jets, New York Knicks, New York Rangers, New York Islanders, New Jersey Devils, Philadelphia Phillies, Philadelphia Eagles, Philadelphia 76ers, Philadelphia Flyers, Washington Capitals, Washington Nationals, as well as numerous minor league baseball teams. Some writers attributed at least some of Modell's problems during the 2010s due to the poor performance of New York sports teams in that decade, and the difficulty in selling their merchandise.[14][15] Art Modell, who owned the NFL football teams Cleveland Browns and then Baltimore Ravens, was the grandson of the founder of Modell's Sporting Goods, Morris A. Modell, but had nothing to do with that company. A perceived affiliation was hoped to be useful when Modell Sporting Goods attempted to penetrate Maryland markets in 2004 — a spokesman stated, "I think that Art Modell having brought a team to Baltimore that won a Super Bowl championship can help in some ways" — but the expansion was ultimately not successful.[16] References
External links |
||||||||||||||||||||||
