Sponsors
Billabong ▼ 0.000 | PPR ▼ -7.85 | American Apparel ▼ -0.05 | The Buckle ▼ -0.10 | Columbia ▼ -7.95 | Deckers Outdoor ▲ +5.66 | Dicks ▼ -0.60 | Foot Locker ▼ -0.98 | Genesco ▼ -1.77 | Iconix Brand Group ▼ -0.05 | Jarden Corp ▼ -0.22 | Nordstrom ▼ -0.52 | Luxottica ▲ +0.78 | Nike ▼ -0.92 | Pacific Sunwear ▼ -0.09 | Skullcandy ▼ -0.03 | Sport Chalet ▼ 0.00 | Urban Outfitters ▼ -0.29 | VF Corp ▼ -0.77 | Quiksilver ▼ -0.16 | Zumiez ▼ -1.17 | Macys ▼ -0.44 | Tillys ▲ +0.08 |
Ticker Sponsor
Readers Say
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
In touch with our business
In touch with our business

If you're not plugged into Shop-Eat-Surf.com daily, you're out of touch with our business!

- By Peter "PT" Townend, The ActivEmpire
Industry Insight

KNOWSHOW: Complete list of exhibit brands and mobile app available.
MOSS ADAMS: Alert! Authorities after 45,000 businesses that didn't file 2012 California corporate taxes.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Surprise winner emerges in Active auction

By Tiffany Montgomery
June 17, 2009 7:47 PM

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 said in court documents that Adrenalina CEO Lekach is not involved in the bid. Lekach has made several overtures to action sports retailers of late, including Pacific Sunwear and West 49.

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.

In its bankruptcy court documents, Active previously said it owes secured creditors $4.7 million and unsecured creditors $15.2 million.

 

 

 

 


Articles You Might Have Missed