NEW YORK--(BUSINESS WIRE)--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.
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