Playing the Field

Copelands' Enterprises Inc. (San Luis Obispo, Calif.) 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.

Under the agreement, The Sports Authority (Englewood, Colo.) is to acquire seven to thirteen of Copeland's current 20 retail store locations. Hilco Real Estate (Northbrook, Ill.), is expected to acquire or remarket the remaining leases.

Copelands' Enterprises, which operates stores under the Copeland Sports banner, is one of the leading specialty sporting goods retailers on the West Coast and inter-mountain regions of the U.S. The company filed for Chapter 11 in August 2006. The purchase agreement is subject to approval from the Bankruptcy Court approval and the sale will be subject to court approval, a court-supervised auction sale, and other conditions to closing.

Copelands says the proposed sale is the best available means of keeping as many of its facilities open as possible. Following its bankruptcy filing, the company found itself unable to continue to operate when key vendors were unwilling to ship new merchandise needed to support sales.

The Sports Authority operates approximately 400 stores in 45 states under “The Sports Authority” name. Hilco Real Estate provides real estate disposition, lease negotiation, real estate appraisal and property disposition services.