Earlier this month, Modell’s Sporting Goods – the country’s oldest family-owned and -operated retailer of sporting goods – voluntarily filed for relief under Chapter 11 and announced store closing liquidation sales. The company is also working with lenders, vendors, and landlords through the restructuring and recapitalization of the business.
As part of these recovery efforts, A&G Real Estate Partners has begun marketing 137 store leases in nine Mid-Atlantic and Northeastern states, as well as in the District of Columbia. The available stores range in size between 6,800 and 32,700 square feet, and boast excellent locations, such as in prime highway retail centers, busy central business districts and regional malls. In addition to favorable rents, many of the leases also offer multiple renewal options, according to A&G statements.
Emilio Amendola, co-president of A&G, praised the quality of the 111-year old company’s real estate strategy.
“This iconic brand had an extraordinary real estate strategy, with the family-owned business assembling one of the strongest portfolios of top retail locations in New York City’s five boroughs – an area with significant barriers to entry,” he said. “Similarly, the vast majority of Modell’s sites on Long Island and in New Jersey, Pennsylvania, New England and the Mid-Atlantic are ‘A’ locations with very advantageous rent structures. Opportunities like this come around once every 10 years.”
He also added, “The Modell’s sites offer tremendous opportunities for specialty retailers, restaurants, medical tenants and other uses.”
Modell’s is confident that, even in the midst of what is considered to be a challenging retail environment, its sale and recapitalization efforts are in good hands. CEO, Mitchell Modell, stated that the company had partnered with A&G Real Estate Partners in the past on both the sale and re-negotiation of leases, and A&G had delivered phenomenal results.
Modell’s Chief Restructuring Officer, Bob Duffy, said, “A&G has always delivered maximum returns to the creditors in these unfortunate circumstances. We are confident they will do that in this case, as well.”