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Modell's Sporting Goods

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Modell's Sporting Goods
Company typePrivate
IndustryRetail
Founded1889; 135 years ago (1889) in New York City, New York, United States
FounderMorris Modell
FateChapter 11 bankruptcy
Liquidation sale
HeadquartersManhattan,
New York City, New York
,
United States
Number of locations
152 (2015)
134 (2020)
Area served
Northeastern United States
Key people
Mitchell Modell, CEO
Eric Spiel, CFO
ProductsSports apparel, Sporting goods, Footwear, Licensed goods
BrandsMajestic Athletic, nike, reebok, etc.
ServicesSporting apparel, Licensed sports gear of the MLB, NHL, NBA, and NFL
RevenueUS$765 million[1] (2008)

Modell's Sporting Goods is an American sporting goods retailer with locations in the Northeastern United States. Modell's carries both sporting goods and related apparel. Modell's had more than 150 retail locations in ten states and the District of Columbia in 2018.[2][3] The company reported revenue of approximately $765 million in 2015.[1] Sales in 2019 were $538 million, 96%/4% split between retail/online.[4] Its slogan is "Gotta Go To Mo's."

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).[5] Modell, a Jewish immigrant from Hungary, opened the first location on Cortlandt Street in Lower Manhattan.[3] (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.[6]

William Modell, who became chairman in 1985, also founded the Crohn's and Colitis Foundation along with his wife, Shelby Modell.[7]

Modell's operated 152 stores at its peak[3] mainly in New York, New Jersey, and Pennsylvania. In recent years, the chain expanded to Delaware, Maryland, Virginia, the District of Columbia as well as Connecticut, Massachusetts, and New Hampshire. Their flagship store is 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 2014, a lawsuit by rival Dick's Sporting Goods accused Modell's CEO of going undercover in their stores to gain access to their retail secrets.[8][9]

In recent years, Modell's faced declining sales which Mitchell Modell has blamed on increased competition, poor performance by professional sports teams, and increased temperatures caused by climate change. In May 2019, Modell lent the company $6.7 million to avoid bankruptcy; in February 2020 the company announced that it intended to close 24 stores.[10][11] However, in March 2020, the company filed for Chapter 11 bankruptcy and announced that it would liquidate its 134 remaining stores, with Tiger Capital being appointed as the liquidator.[12][13] The liquidation began on March 13, 2020.[14]

Modell's sporting goods store in the Upper East Side, New York City

Hilco Streambank is auctioning Modell's intellecutal property, including customer data and the marketing jingle, on August 4, 2020.[4] Hilco Streambank is also placing the stalking horse bid at $1.965M.

Mission

Modell's approach as "Your Hometown Sporting Goods Store" through local specialized offerings, community relationships, and programs such as Team Weeks, which assists local schools, leagues, and non-profit organizations had made it a very successful company through the years. Modell's #1 mission statement was to "Listen, Respect, and Respond" to the needs of their customers, associates, and vendors. Modell's sponsored many professional sports teams in their 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.[15][16]

References

  1. ^ a b Lieber, Chavie (May 18, 2016). "What the Hell Happened to Sports Authority". Racked. Retrieved 6 March 2018.
  2. ^ "About Us | Modell's Sporting Goods". www.modells.com. Retrieved 6 March 2018.
  3. ^ a b c Hevesi, Dennis (2008-02-15). "William D. Modell, Seller of Sporting Goods, Is Dead at 86". New York Times. Retrieved 2008-03-07. William D. Modell, who as chairman of the Modell's Sporting Goods chain oversaw its expansion throughout much of the Northeast, died Thursday in Manhattan. He was 86 and lived in Hewlett Harbor, N.Y.
  4. ^ a b "Acquisition Opportunities/ Modell's". Hilco Streambank. Retrieved 28 July 2020.
  5. ^ Hajewski, Doris (2006-08-27). "Burghardt's takes team approach as it passes ball down the line". Milwaukee Journal Sentinel. Retrieved 2008-03-07.
  6. ^ "SGB 2016 Retail Top 100: The List | SGB Media Online". sgbonline.com. Retrieved 2020-03-17.
  7. ^ "Crohn's & Colitis Foundation". online.crohnscolitisfoundation.org. Retrieved 2019-05-09.
  8. ^ "Retailer: Rival CEO posed as exec to get secrets". Mail Online. 28 February 2014.
  9. ^ ABC News. "Dick's Sporting Goods Accuses Rival Modell's of Spying". ABC News.
  10. ^ Doherty, Katherine (February 15, 2020). "Modell's Struggles to Keep Family Sporting-Goods Empire Alive". Bloomberg. Retrieved 22 February 2020.
  11. ^ Connor, Frank (22 February 2020). "Sporting goods retailer Modell's to close 24 stores: CEO". Fox Business. Retrieved 22 February 2020.
  12. ^ D'Innocenzio, Anne (11 March 2020). "Sporting Goods Chain Modell's to Close Its Remaining Stores". U.S. News & World Report. Associated Press. Retrieved 11 March 2020.
  13. ^ Biswas, Soma (11 March 2020). "Modell's Files for Bankruptcy, Plans to Close Down All Stores". Wall Street Journal. Retrieved 11 March 2020.
  14. ^ "Sporting goods chain Modell's files for bankruptcy, will close its remaining stores". ABC7 New York. 2020-03-11. Retrieved 2020-03-12.{{cite web}}: CS1 maint: url-status (link)
  15. ^ Modell's Sporting Goods to Close All Stores After Bankruptcy Filing
  16. ^ The Lost Decade of New York Sports
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