The future of Bauer Hockey, the worlds most well established brand looks in doubt right now with its owner – Performance sports group Ltd (PSG). PSG Filed Chapter 11 in the USA & Canada, the UK’s equivalent of bankruptcy. The company had little choice as the “wolves” were at the door, PSG failed to return accounts to them in time. Should no-one step forward then Bauer Hockey & Easton Hockey goes bankrupt along with PSG
How Bauer got in trouble
Following a terrible and traumatic 2016 in sales with the world decline in Sales & the failure of one its largest account in the USA first quarter 2016 – the Sports authority. The Sports Authority had over 450 stores throughout the USA & Canada. PSG reported to have to write off over $90m in stock to this one failure alone.
PSG borrowed over $300m to purchase Easton Hockey in January 2016. This created additional pressure on the struggling firm, having to repay such a massive loan.
Soon After CEO of PSG was sued by the New York District court facing allegations of channel stuffing. Channel stuffing is a practice which falsely gives revenue and net income from sales that haven’t been actually made. PSG allegedly pressured retailers to make pre-orders, falsely inflating the company’s sales revenues
The signs were there from the famous announcement by Ed Kinnaly “hockey is in decline”, a strange comment from then CEO of Bauer Hockey – Bauer Performance Sports Ltd
Bauer Hockey the Future?
Fortunately, there is hope for Hockey fans in the guise of an investor group largely owned by two financial organisations Sagard Capital & Fairfax Financial. Talks to buy out all the company assets for just under $600m US dollars are underway. This could mean the saving and restructuring of these two iconic brands. The UK distributor for both Bauer & Easton were unavailable to comment at this time due to a company relocation.
Demon Xtreme’s Hockey Department one of the UK’s most dominant figures in UK hockey sales is confident that these two great hockey brands will live on and Hockey will fight through this obvious time of turmoil. MD of DemonXtreme added, “let us hope the new buyers are successful and this time they have hockey as their main motivation”.
Tell us your views, how do you feel about Bauer or Easton. Will you switch over to other brands happily if both these hockey icons disappear.?