Modell’s Sporting Goods, the century-old New York-area chain, has hired a trio of advisers including a chief restructuring officer in recent weeks in an effort to save itself after a poor showing over the holidays, said Mitchell Modell, chief executive and founding family scion, <em>WSJ Pro Bankruptcy</em> reported. Modell acknowledged that the company has stopped paying some landlords and some of its vendors, and has started talks with suppliers, trying to preserve cash and avoid bankruptcy. Modell’s has faced sagging sales and competition from big-box stores and online retailers. Recently, Modell’s spent millions of dollars on Jets, Giants and Yankees merchandise, which hasn’t sold well since the Yankees didn’t make the World Series and the Jets and Giants football teams had a lackluster season, Modell said. A relatively warm winter also hurt since demand for boots and sweatshirts was softer than expected, Modell said. The company will start talks with its landlords next week in hopes of reaping savings on rent, he said.
