MC logo_new with tag-blue

MC Sports

Intellectual Property
Acquisition Opportunity


Bid Deadline: Monday May 8, 2017 @ 5:00PM ET


INTRODUCTION

Hilco Streambank has been retained by Michigan Sporting Goods Distributors, Inc. (“MC Sports” or the “Company”) to sell its intellectual property assets including its Active Rewards loyalty program, trademarks and private label brands (the “Assets”). The Company is currently operating as a Debtor under Chapter 11 in the United States Bankruptcy Court for the Western District of Michigan (the “Bankruptcy Court”).

BACKGROUND

Founded in 1946, MC Sports® is a sporting goods retailer who, as of 2016, operated 80 retail store locations throughout the Midwest. The Company maintained a loyalty program, called Active Rewards, with 1.37 million members and 532 thousand opt-in email addresses. The company communicated with Active Rewards members 1-2 times per week throughout the year, ramping up the frequency during peak and holiday seasons. Active Rewards members generated one point per dollar spent on each purchase and could redeem 500 points for a $15 gift card (3%).

MC Sports® offerings included merchandise from leading national brands such as Nike®, Adidas®, Under Armour®, Wilson®, Columbia® and others, as well as products bearing the Company’s exclusive private brands such as: Traverse Bay Tackle®, Drift Creek®, DC Athletics® and DC Performance®.The Company’s private brands generated more than $1.3 MM in sales in 2016. Sales for the last 3 fiscal years were $174.56MM, $175.89MM and $169.59MM in 2016, 2015 and 2014 respectively. The Top 5 product categories for MC Sports from highest to lowest grossing are Field and Stream (17%), Athletics (13%), Footwear (12%), Men’s Apparel (11%), and Women’s Apparel (8%).

AVAILABLE ASSETS

Active Rewards - Loyalty Rewards Program

  • Total customer list consisting of approximately 1.37MM distinct customer files
  • Approximately 532K Opt-In E-mail Addresses
  • Approximately 1.28MM Phone Numbers and Physical Mailing Addresses
  • Nearly 150K new members joined the loyalty program in 2016
  • The Active Rewards database is maintained and managed on the Preferred Patron platform
  • The Preferred Patron platform was used for onboarding of new members, tracking of reward balance history and transactional data, and managing team affiliate programs


Email Database

  • Email marketing database using Constant Contact platform
  • The Constant Contact account is used as a marketing platform which communicates to the 532K opt-in email addresses from the Preferred Patron database, 400K of those have shopped in the past 36 months, 250K in the past 12 months
  • MC Sports communicates with its loyalty members 1-2 times weekly

 

Trademarks

  • MC Sports®
  • MC Sporting Goods®
  • MC®
  • When The Right Gear Matters®
  • Private Label Brands including:
    • Traverse Bay Tackle®
    • Drift Creek®
    • DC Athletics®
    • DC Performance®

  

Domain Names & Website Platform

  • www.MCSports.com URL
    • More than 1.4MM unique visits in 2015
    • More than 1.8MM unique visits in 2016
  • Registered Domain Names Including:
    • michsport.com
    • mymcsports.com
    • mcski.ski
    • mcsport.ski
    • mcsports.ski
  • Maintain Affiliate Programs with Fanatics.com and others

 

DILIGENCE & SALE PROCESS

The Company is currently soliciting interest from buyers interested in acquiring all or some of the Assets. A virtual data room has been established for access to due diligence information. 

The Assets will be sold through a Bankruptcy Court approved sale process and transferred subject to a Bankruptcy Court order.