MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
Details on Industry Insight.
A surprise winner has emerged in the bidding for Active Ride Shop.
A Florida real estate and hotel developer with a background in the garment industry and who is an acquaintance of Adrenalina CEO Ilia Lekach submitted the highest bid at an auction Tuesday, according to court records.
Issa Ladha's Active Sports Lifestyle USA submitted the highest bid at $5.2 million - $1 million in cash and the assumption of $4.2 million of Active's secured debt, bankruptcy court documents show.
That figure is lower than the $7.2 million in cash Zumiez originally thought it would offer for Active, before Zumiez conducted the due diligence process.
According to court documents, other companies at the auction included retailer Nine Star Corporation, Zumiez, Surf Associates Inc. (BC Surf & Sport) and Meleen & Co. The court documents did not specify if all the companies present made bids or any details about other bids made.
Ladha owns commercial properties that are leased by Burger King, Pier 1, and Walgreens. He also owns hotels in Florida, Pennsylvania and Puerto Rico.
Previously, Ladha owned wholesale garment companies that sold to retailers such as JC Penney and Kmart. He also owned retail stores under the Rani banner.
In court documents, Ladha says if his is the winning bid, he will bring in Esmail Mawjee, who worked with him in his garment and retail businesses, to manage Active.
Ladha said he will assume the leases of 20 Active stores if landlords make certain concessions, and he reserves the right to decline certain leases before the deal is finalized. Currently, Active operates 21 stores. The only store not on Ladha's list is Norco, according to court documents.
The court must still approve the final sale, and a hearing is scheduled for June 30 to address the sale issue.