In a series of acquisitions and mergers, which seem to be making news every second day since pandemic hit the retail world early this year, here’s one more.
Modell’s Sporting Goods, the well-known American sports good retailer, was bought by Retail Ecommerce Ventures (REV) late last week.
Notably, REV had acquired the online clothing retailer Dressbarn back in 2019.
Here it is also important to mention that Modell’s was struggling even before the coronavirus had hit the globe. Back in 2019, as reported by The Wall Street Journal, Modell’s had hired restructuring advisers distinctly indicating financial troubles.
Failure of finding a buyer since last 1 year along with coronavirus-induced store closures and lockdown finally drove the retailer to the brink of insolvency.
Finally REV has bought it!
The sale of sports brand’s intellectual property has topped US $ 3.6 million. Besides Modell’s trademarks, the assets comprise its domain names and customer database with around 5.6 million files in it.
The assets also include its much famous slogan ‘Gotta Go To Mo’s’. This was confirmed in court filings as well as in a statement released by the US retailer.
There couldn’t have been a better buyer than REV for Modell’s! REV, reportedly, has seen its brands make over US $ 1 billion in sales ever since it was found last year by Alex Mehr and Tai Lopez, whose rich experience in digital marketing with Facebook and YouTube has helped REV stand out.
REV has been focusing on ‘creating thriving digital stores where physical-first operations previously failed’.
And for brand owners, it helps them make more margins at less risk.
Known for its sporting goods and apparels, Modell’s generates revenue of nearly US $ 765 million. It currently has around 134 stores.