Modell’s Sporting goods has been sold to Retail Ecommerce Ventures (REV), the same firm that purchased the Dressbarn in 2019 and Pier 1 out of bankruptcy earlier this year.
According to court documents, REV purchased all of Modell’s intellectual property last week, including the infamous “Gotta Go to Mo’s” jingle, for $3.6 million. Additional assets include Modell’s trademarks, domain names, as well as a customer database of at least 5.6 million shoppers.
The family-owned retail chain filed for bankruptcy back in March and moved to liquidate all of its 134 locations.
Earlier, Modell’s had planned to close a number of its stores and sell itself to a third party. Unfortunately, the company missed the opportunity as COVID-19 took its toll on the company, as it did with many other retail brands.
Prior to these moves, the retailer hired restructuring advisers as it had been struggling, according to the Wall Street Journal. However, court documents show that the retailer had been engaging with restructuring advisers since 2017 as it failed to compete with big-box retailers and online players.
After two years of trying to find a suitable buyer, Modell’s can hopefully breathe again with REV in its corner. REV has generated more than $1 billion in sales since its founding in 2019 by Alex Mehr and Tai Lopez.