Mitchell Modell, the CEO of Modell’s Sporting Goods, faced financial difficulties with his company, leading to its bankruptcy and closure in 2020.
Mitchell Modell was at the helm of Modell’s Sporting Goods, a family-owned business founded in 1889. Under his leadership, the company expanded significantly, but it also faced intense competition from big-box retailers and online stores. Despite efforts to modernize the brand and improve the customer experience, Modell’s struggled to keep up with the changing retail landscape.
The company’s financial troubles became public when Mitchell Modell personally appealed to landlords for rent reductions and sought investors to save the business. However, these efforts were not enough to overcome the mounting debt and declining sales. The situation was further exacerbated by the COVID-19 pandemic, which hit the retail industry hard, especially brick-and-mortar stores.
In March 2020, Modell’s Sporting Goods filed for Chapter 11 bankruptcy, announcing that it would close all of its 153 stores. The liquidation of the company marked the end of an era for the Modell family business, which had been a staple in the Northeastern United States for over a century. Mitchell Modell’s personal and professional life was significantly impacted by the closure, as he had invested much of his career in the family business. The bankruptcy and subsequent liquidation of Modell’s Sporting Goods were a testament to the challenges faced by traditional retailers in the modern economic climate.