Copelands' Enterprises Announces Definitive Agreement for Sale of Assets

Copelands' Enterprises, Inc. (the "Company") today announced that it has entered into a definitive asset purchase agreement with a joint venture composed of The Sports Authority, Hilco Real Estate, LLC and Hilco Merchant Resources, LLC.
Author:
Publish date:

SAN LUIS OBISPO, Calif., Nov. 3 -- Copelands' Enterprises, Inc. (the "Company") today announced that it has entered into a definitive asset purchase agreement with a joint venture composed of The Sports Authority, Hilco Real Estate, LLC and Hilco Merchant Resources, LLC. Under the agreement, The Sports Authority is to acquire seven to thirteen of Copeland's current 20 retail store locations. Hilco Real Estate, which has acquired certain lease designation rights, is expected to acquire or remarket the Company's remaining leases. Together with the Sports Authority, Hilco Merchant Resources and Hilco Real Estate collectively structured, financed and facilitated the strategic transaction, and will also manage the disposition of unwanted assets.

The Company, which is operating under Chapter 11 of the Bankruptcy Code, plans to immediately seek Bankruptcy Court approval of the agreement. The sale will be subject to court approval, a court-supervised auction sale, and other conditions to closing.

The Company believes The Sports Authority plans to retain many of the current employees working at the Company's retail stores. In the Company's view, the proposed sale is the best available means of keeping as many of its facilities open as possible. Sale of its business as a "going concern" should maximize the value of its assets and operations for the benefit of its creditors and help preserve jobs for company employees. Following its bankruptcy filing, the Company found itself unable to continue to operate when key vendors proved unwilling to ship the new merchandise needed to support sales at the Company's stores.

The Sports Authority, Inc. is headquartered in Englewood, Colorado. It operates approximately 400 stores in 45 states under "The Sports Authority" name. The Sports Authority, Inc.'s e-tailing website, located at thesportsauthority.com is operated by GSI Commerce, Inc. under license and e-commerce agreements.

Hilco Real Estate, LLC is headquartered in Northbrook, Illinois. It provides real estate disposition, lease negotiation, real estate appraisal and property disposition services.

Hilco Merchant Resources (www.hilcomerchantresources.com) provides high yield strategic retail inventory disposition and store closing services. Over the years, Hilco principals have disposed of assets valued in excess of $35 billion. Hilco Merchant Resources and Hilco Real Estate are part of the Hilco Organization, a provider of asset valuation, acquisition, disposition and financial services to an international marketplace through 19 specialized business units, 400 employees and nearly 200 qualified field consultants.

Copelands' Enterprises, Inc., operating as "Copeland Sports," is one of the leading specialty sporting goods retailers on the West Coast and inter-mountain regions of the United States. The Company has been subject to Chapter 11 proceedings since August 14, 2006.

The foregoing information may include forward-looking statements. Such statements include, but are not limited to, statements regarding the future completion of a transaction currently under contract, the value to be received in or by such a transaction, the ultimate disposition of retail stores and other facilities, and the likelihood of offers of employment may be. Forward- looking statements are subject to various risks and uncertainties, including but are not limited to (a) the risk that required bankruptcy court and other required governmental and other approvals may not be obtained, (b) the possibility that any of various contingencies, including but not limited to purchaser's due diligence review, will not be satisfied, and (c) other factors.

Related