Just over a month ago, Modell’s Sporting Goods, the century-old New York area chain, found itself fighting for its life. A report in the Wall Street Journal that the chain, long a fixture in New York and Philadelphia’s athletic apparel retailing, hired BRG, a consulting firm known for its work for bankrupt companies, sent its suppliers running for the exits. In the weeks that followed, Mitchell Modell, chief executive and fourth-generation scion of the chain’s founding family, scrambled to pull off the nearly impossible: regaining the confidence of vendors once word gets out that a retailer has hired a restructuring firm. Within four days after the initial article in the Journal about Modell’s hiring BRG, daily shipments to Modell’s distribution center slowed to 7,000 from 18,000, according to Modell. Modell knew the only way to calm his suppliers and their financiers was to reach out to them directly. He and his merchandising chief, Charles Castaneda, held a full-court press for hundreds of vendors. “I gave my personal number to every CEO and president of my suppliers,” Modell said. Over the next six weeks, Modell waged an all-out campaign to win back suppliers and their financing sources. The effort, so far, has been a success. His strategy: “overcommunicate” with suppliers. Read more. (Subscription required.)
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