KBRA Credit Profile (KCP) Releases Special Report: Modell’s Files Chapter 11; Will Close All Stores

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a special report, Modell’s Files Chapter 11; Will Close All Stores, which examines CMBS exposure to Modell’s Sporting Goods, Inc. in the wake of a voluntary Chapter 11 filing. The company and 13 affiliated debtors each filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the district of New Jersey on March 11. The fourth-generation retailer has been unable to find an outside equity investor and has not garnered adequate support from its landlords and vendors. Tiger Capital Group has been engaged to liquidate the company’s remaining stores beginning Friday, March 13. Online sales will continue during the liquidation process.

Last week, KBRA Credit Profile (KCP) published a report, Mo’s, Gotta Go?, which highlighted concerns with Modell’s, including a potential bankruptcy filing and the closure of 17 of the company’s 141 locations. As detailed in the report, Modell’s serves as either a collateral or non-collateral/shadow tenant at 33 properties, $4.38 billion by allocated loan amount (ALA), collateralizing 32 loans securitized in 56 transactions. KCP will continue to monitor bankruptcy proceedings and provide timely updates as the situation unfolds. For subscribers of the KCP platform, a list of loans and properties exposed to Modell’s is available here.

To view the report, click here.

Related Publications: (available at kcp.kbra.com)

CONNECT WITH KBRA

Twitter
LinkedIn
YouTube

About KBRA Credit Profile

KCP is a research service and nothing herein or otherwise provided by KCP shall be construed as a rating. Any rating opinions, analysis, projections, observations, data or other items constituting part of any information provided or distributed by KCP or KBRA are and must be construed solely as statements of opinion and not statements of fact.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Ryan Friend, Senior Analyst
+1 (215) 882-5915
rfriend@kbra.com

Patrick Czupryna, Senior Director
+1 (215) 882-5854
pczupryna@kbra.com

Mike Brotschol, Managing Director
+1 (215) 882-5853
mbrotschol@kbra.com

Business Development Contact:

Marc Iadonisi, Senior Sales Director
+1 (215) 882-5877
miadonisi@kbra.com

Contacts

Analytical Contacts:

Ryan Friend, Senior Analyst
+1 (215) 882-5915
rfriend@kbra.com

Patrick Czupryna, Senior Director
+1 (215) 882-5854
pczupryna@kbra.com

Mike Brotschol, Managing Director
+1 (215) 882-5853
mbrotschol@kbra.com

Business Development Contact:

Marc Iadonisi, Senior Sales Director
+1 (215) 882-5877
miadonisi@kbra.com