In a court hearing on Nov. 20, the U.S. Bankruptcy Court, Northern District of Texas, Dallas, has approved the sale of Keys Fitness and Backyard assets and inventory by owners Jacobson Partners.
As reported in a Nov. 17 SNEWS® story (click here to read), the Ironman-branded inventory will be returned to the licensor, World Triathlon Corporation, for $593,250, including all 2009 licensed inventory and the right to all tooling equipment for the product. The licensing agreement would then be terminated.
In addition, other accounts would be sold to Hilco for approximately $508,500. Hilco (www.hilcofinancial.com) specializes in asset acquisition and disposition.
Jacobson Partners (www.jacobsonpartners.com) has declined comment.
SNEWS® View: The question should be answered as soon as next week who will snap up the valuable Ironman license for fitness equipment as well as who nabs the rest of the Keys accounts. The sale likely foretells the conclusion of the Ch. 11 reorganization bankruptcy case filed by Keys Fitness in April 2008 and, most likely, could be the end of the Keys brand.