Heritage Collegiate Apparel, the official sports merchandise retailer of the University of Michigan athletics more commonly known as The M Den, has filed for Chapter 11 bankruptcy, the organization announced Friday.
The bankruptcy filing comes amid reports that Heritage Collegiate Apparel hopes to sell the company while facing a barrage of claims from landlords and merchandise vendors regarding a host of unpaid bills and missed rent payments.
While Michigan merchandise sold well following the football team's 2023 NCAA National Championship, financial issues have been mounted for the retailer.
Sale soon: Beleaguered M Den says sale of company near, Novi store closed
The largest known claim against the organization comes from a sportswear manufacturer in Kansas that claims The M Den and its co-owner and president, Scott Hirth, of Carleton, owe more than $4 million.
In another, a New York-based firm claimed The M Den owed $437,000 in March after The M Den allegedly defaulted on a merchant cash advance agreement.
The M Den has faced two separate claims regarding missed rent payments in the Briarwood Mall in Ann Arbor and the Twelve Oaks Mall store in Novi, which closed on Thursday.
Also on Thursday, The M Den reported online that a sale of the company was imminent. On Friday the organization said the bankruptcy filing was done as a part of that sale.
"We hope the sale can be concluded quickly and can be announced very soon," the statement reads.
With the new school year approaching in Ann Arbor, the announcement indicated that the M Den will remain open during the bankruptcy filing.
Potential new buyers
On Wednesday, the Free Press reported that a U-M athletic department official indicated in an email that the university is in talks with Legends Global Merchandise to be its new "Official Team Store," and that they plan to continue to operate using The M Den store name despite new ownership.
Legends is a multifaceted sports business firm headquartered in New York City. It has merchandising, venue planning, sponsorship and hospitality divisions, according to its website Legends.net .
Legends is said to be majority-owned by a private equity firm, Sixth Street, with minority owners that include the New York Yankees and the Dallas Cowboys.
The M Den has been the official store of the U-M athletic department since the early 1990s, with the exception of a short break in 2009, when M Den lost the contract to Dallas-based eSports Partners Inc. The M Den regained the contract the following year amid fan complaints over the new company, including with filling orders.
Financial trouble brewing: Claims of unpaid bills piling up for The M Den
Last week, the U.S. Department of Justice sued Legends over its proposed $2.35 billion acquisition of ASM Global, a firm that does bookings and management for venues such as stadiums. The lawsuit accuses Legends of engaging in illegal premerger coordination, and includes a $3.5 million proposed settlement.
A Legends spokesperson said they are pleased the matter is resolved and that they hope to finalize the acquisition later this month.
Business reporter JC Reindl contributed to this story.
Breaking news reporter Liam Rappleye can be reached at LRappleye@freepress.com
This article originally appeared on Detroit Free Press: U-M athletic retailer M Den files for bankruptcy while nearing sale of business
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