104 Layoffs At Bankrupt Maurice Sporting Goods Could Start Friday

NORTHBROOK, IL — About a week after agreeing to sell its assets to a Northbrook-based private investment firm and voluntarily entering Chapter 11 bankruptcy, Maurice Sporting Goods notified its workers in Illinois that 104 positions could be eliminated starting Friday, according to a filing with the state.

CEO Jory Katlin says no final number of job reductions has been determined.

"Of all the layoffs we're going to do, the majority will be in Canada and it won't be close to 104," he said.

However, no other locations for layoffs other than Northbrook are listed in the state-mandated filing, which do not apply to Canadian jobs, and Katlin did not say why he would have announced significantly more layoffs than are actually planned.

News of the layoffs was included in the company's legally required layoff notification under the Illinois Worker Adjustment and Retraining Notification law – or WARN Act. The reason for the permanent cuts is listed as "bankruptcy." The notice said the first layoff date is Dec. 8 but did not provide a final date.

The recreational goods and wholesaler, headquartered at 1910 Techny Rd., is one of North America's largest distributors of outdoor sporting goods, especially when it comes to hunting and fishing gear. But according to its bankruptcy filings, the business has struggled since it consolidated all its distribution to a facility in Georgia, which ran "significantly over budget."

After it opened in the fall of 2016, "its operating costs greatly exceeded expectations," according to an affidavit from Patrick O'Malley, Maurice's chief restructuring officer.

Over the past two years, Maurice said it has taken major steps to address concerns about liquidity, including cuts to operating costs. But the recent bankruptcies of other sporting good retailers and the "generally challenging retail environment" has also contributed to its losses.

In a news release, the company said the reorganization and sale process would "have no impact on [its] daily operations or its ability to fulfill its obligations to customers and employees."

In October, the company announced it had signed a letter of intent to sell to Peak Global Holdings, LLC, the parent company of Big Rock Sports, Head Quarters Taxidermy Supply, and Bluefield Brands. However, Peak pulled out of the deal Oct. 19.

Middleton Partners submitted its own formal letter of intent Nov. 20 and has bid $39 million to buy the company in ongoing bankruptcy proceedings.

"We are extremely pleased that Middleton Partners is going to purchase Maurice's assets and continue our strategic vision and customer and vendor relationships," said Maurice President and Chief Executive Officer Jory Katlin, announcing the deal. "It has been a challenging couple of years, I am excited we have found the right partner to strengthen the Company's balance sheet and unleash new funding to fuel future growth."

According to bankruptcy filings, the deal includes $3 million for closing assets, $5 million for new inventory, $10 million for non-current inventory and $1 million for current inventory.

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