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Authentic Brands Group,
owner of MMA brand Tapout, buys Prince Sports after racket brand files chapter 11 bankruptcy in US
Prince Sports has filed a reorganisation plan with the US Bankruptcy Court that makes provision for its acquisition by the Authentic Brands Group, owner of the MMA brand Tapout. The voluntary bankruptcy filing will relieve Prince of a debt burden in excess of $60-m and give Authentic Brands Group (ABG) 100% ownership.
The tennis unit accounts for 83% of Prince’s revenue and recorded sales of $59-m last year. Ektelon (racquetball) and Viking (paddle tennis) account for the rest. Apart from the popular Tapout brand (official clothing sponsor of EFC), ABG also owns the rights to brands Hitman Fight Gear, Iron Star, Marilyn Monroe, Sinister, and Bob Marley.
In court papers Prince CEO Gordon Boggis cited the global economic downturn after 2008 and increased competition in the tennis market despite declines in the global racket sport market as reasons for their difficulties. The company had been trying to sell assets since November 2010. Last year they hoped a new brand and marketing strategy, licensing agreements and upgraded products would increase market share sufficiently to counter debts. In December 2011 it was decided that the company should be sold as going concern. In March this year ABG acquired the secured debt from investors.
According to Boggis ABG-Prince will use the Chapter 11 process to develop a more competitive business model to continue “to be globally recognised as a leader in its category. We anticipate emerging from this period as a more efficient, performance racket sports brand with a more competitive model in the market.”
Prince pioneered the “larger sweet spot” racket head in the 1970s and from then on dominated the courts in the hands of stars like Andre Agassi, Martina Navratilova and Maria Sharapova. But, stiff market competition resulted in a struggle for market share as the brand changed ownership several times during the past ten years. The Benetton Group sold Prince to Lincolnshire Management in 2003, who in turn sold the brand to Nautic Partners LLC in August 2007.