Heritage Collegiate Apparel, formerly known as M Den – the University of Michigan’s sporting goods retailer that filed for bankruptcy earlier this month – is asking a federal court to quickly approve the sale of the company because there are two interested buyers and football season begins Saturday.
The company said in a filing Tuesday in U.S. Bankruptcy Court for the Eastern District of Michigan that the sale must be completed next month to avoid losing a bid from Lids Holdings Inc. or selling to another “interested party.”
“The prospective buyers understandably want to complete the sale while there are several home games left in the season,” the filing states. “Completing the purchase of the debtor’s assets after the university’s home games have been played is like completing the purchase of a beach resort in November. The buyer would not expect to realize any significant profits until next season, which will lower the purchase price.”
More: M Den just went bankrupt. It owes the University of Michigan
Lids, whose majority owner is Fanatics Inc., did not respond to a request for comment. Lids submitted an offer that would be worth $4.25 million on Sept. 13, the filing said. The offer will expire if the sale is not completed by Sept. 20.
The “interested party” would like to complete the deal in a “similar time frame,” the application states.
The documents explain that Heritage, then known as M Den, began looking for potential buyers for the company in February “with the assistance of the university.”
To find buyers, the company turned to Champions Circle, founded by former Michigan fullback Jared Wangler in June 2022. Current board members include Fab Five basketball player Jimmy King, former Wolverine quarterback John Wangler and Chris Wormley, a former UM defensive end who played in the National Football League.
Champions introduced the company to the “interested party,” which, according to the documents, is a “global corporation specializing in the sale of college sporting goods.”
One section of the application lists Legends Global Merchandise LLC as a buyer who has provided proof of financial ability to complete a sale.
It has previously been reported that Legends is considering purchasing the company. Legends aims to become “the world’s leading retail and merchandising company,” according to its website. A spokesperson did not respond to a request for comment.
Heritage is asking the court to schedule a hearing on September 12 to approve the sale to the highest bidder.
M Den filed for bankruptcy on August 16, saying the company had liabilities of up to $50 million after months of financial difficulties.
The company said it has 100 to 199 creditors and liabilities of $10 million to $50 million on assets of $1 million to $10 million. The largest unsecured debt, according to the filing, is more than $8.8 million it owes the University of Michigan athletic department for royalties. Other large unsecured creditors include Nike ($2.6 million), BCS Apparel ($4.3 million in commercial debt) and Twelve Oaks Mall in Novi ($206,434 in back rent).
Due to the company’s financial difficulties, three M Den stores were forced to close. The retailer still operates two stores in Ann Arbor.
Scott Hirth, owner of Heritage, and the university did not respond to requests for comment.
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