Schutt Sports Seeks Protection under Chapter 11

LITCHFIELD, Ill.--(BUSINESS WIRE)--Schutt Sports, Inc. (“Schutt” or the “Company”), a leading domestic manufacturer of protective sports equipment and aftermarket reconditioning services, today announced that Schutt and certain of its affiliates filed petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company intends to operate its business without interruption during the Chapter 11 cases as it explores certain strategic options to maximize value and recoveries for all stakeholders.

“This process will allow us to continue operating our business as usual and to continue servicing our customers without disruption. We have the support of our bank, a great brand and look forward to strengthening our balance sheet and serving our customers for many years to come.”

“Schutt’s management and board of directors determined that a Chapter 11 process would provide the best long-term solution for our customers, suppliers, and employees,” said Robert Erb, President and Chief Executive Officer of Schutt. “This process will allow us to continue operating our business as usual and to continue servicing our customers without disruption. We have the support of our bank, a great brand and look forward to strengthening our balance sheet and serving our customers for many years to come.”

The Company has obtained a Debtor-in-Possession financing facility of $34 million, which will provide sufficient funds to continue normal business operations.

The Company is exploring strategic options to maintain long-term health, including selling some or all of the businesses or raising additional equity. The Company has received a proposal for a plan of reorganization funded by a rights offering, backstopped by a group of investors. Riddell, Inc., whose lawsuit was a proximate cause of the need to file chapter 11 would not be given the opportunity to invest in the proposed rights offering.

The proposed plan of reorganization would also provide for a significant deleveraging of the Company's balance sheet. The Company is considering this proposal, while it also seeks other equity sponsors and acquirers for Schutt. If one of these transactions were to materialize, it would be implemented via a plan or Section 363 auction transaction. The Company has engaged Oppenheimer & Co., Inc., as its investment banker, to explore these options.

The Company will continue to pursue vigorously its appeal of the judgment entered against it in favor of Riddell, Inc. during this process.

About Schutt Sports:

Schutt Sports is a domestic manufacturer and the world’s leading maker of football helmets and faceguards. Three out of four professional football players take the field wearing Schutt® gear. The ION 4D, AiR XP, and DNA line of helmets are the world’s only football helmets to feature TPU Cushioning – the same material used by the US military for helmets for fighter pilots and paratroopers. Schutt faceguards are the best in the world, both in form and in function. Schutt is also the manufacturer and supplier of bases to Major League Baseball and helmets and protective equipment for the US Olympic Softball Team. Schutt gear is designed for maximum performance based on standards dictated by the most important person in our world – the player.

Schutt shares the same passion, intensity and devotion to the game as the player. Players know what they want, they know why they want it and they know they’ll succeed when they get it. For nearly a century, Schutt has made their gear - all with the sole purpose of empowering players to focus and perform at the top of their game.