A massive sports retailer now begins to liquidate after filing for bankruptcy when a funding partner terminated its agreement.
Signa Sports United has a large profile doing business under a number of names, reports TheStreet.
“We own businesses and brands in bike, tennis and outdoor.
SSU has 80 online sites and partners with 500 shops in serving over 6.7 million customers worldwide,” the company says on its website.
“The SSU group includes Tennis-Point, Tennis Pro, Tennis Express, WiggleCRC, Fahrrad.de, Bikester, Probikeshop, Campz and Addnature.”
SSU began to fall apart in mid-October when it saw its funding partner, Signa Holdings, terminate a €150 million ($162.8 million) binding equity letter.
The company had drawn only €7 million of that credit line, reports TheStreet.
“After many years of mutually trusted collaboration and reliable financing between the company and Signa Holding, SSU has relied on the binding and unconditional nature of the Equity Commitment Letter to continue to draw funds to meet its near-term obligations and for its going concern assessment of the company and its subsidiaries,” SSU said in a news release.
“The company considers the termination of the Equity Commitment Letter by Signa Holding unjustified.”
On Oct. 2 the board concluded that “the benefits associated with being listed on the New York Stock Exchange do not justify the costs and demands of management’s time necessary to meet the company’s U.S. regulatory commitments,” the company said.
The board then decided to begin the delisting process, it said.
SSU wanted to get out from under the expense of meeting NYSE listing requirements.
After its credit was pulled, however, the company began closing and liquidating its various brands.
Other Economy News Today
Bank of America is now freezing customer accounts according to the bank’s latest scandal and user reports.
A dad’s Bank of America account has suddenly closed overnight – leaving him broke and worried about feeding his family, reports The-Sun.
Elad Nehorai spent hours trying to access his life savings at a Bank of America branch in Los Angeles, reported local CBS affiliate KCAL News.
He complained about his treatment on X, formerly Twitter, saying: “I am with my wife & daughter in a @BankofAmerica office.
“They shut down my account with any notice or explanation, and we won’t be able to feed our family or pay medical expenses.
“We are staying here until it’s fixed. So far they have refused to even explain why they did this.”
His worrying post prompted a number of people to offer help in July.
One user said: “I sympathize with you Elad, BoA did this to my mother last year and it took us forever to get it worked out.
“Please let us know if we need to start up a fund drive for your family to tide you over until it gets resolved.”
Another user said: “I’m horrified that this is legal and apparently we have no recourse, even for answers.
“I am so naive, I didn’t think anything like this could happen here. Scary and frustrating.”
When the bank “heard CBS wanted to cover it [the story], the tone instantly shifted… the bank manager removed the hold on our account and transferred [his money] to another account.
“So, we have our money and can feed our family. That’s thanks to all of you,” Elad stated on X.
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