Specialty footwear retailer Sports Zone filed for chapter 11 in Maryland after failing to sell the company for about a year. The retailer cited assets of $500,000 to $1 million and total liabilities of $1 million to $10 million, which includes trade payables to Adidas, New Balance and I-Fe Apparel along with Nike’s $1.865 million disputed security interest claim tied to a promissory note issued to Nike earlier this year. In the case, Nike is asserting the promissory note gives them a security interest in Sports Zone’s assets, which Sports Zone says it will contend against. Halifax of Palisade has been identified as a potential buyer for the company’s remaining assets.
Wood-fiber-processing company Rentech sought chapter 11 protection in Delaware to sell certain assets and wind down remaining operations. Certain subsidiaries, including the Fulghum Fibres business, did not file for chapter 11 and entered into an asset purchase agreement with Scott Davis Chip Co. Additionally, the company signed another asset purchase agreement with True North Timber to sell its Atikokan Facility. Rentech listed both assets and liabilities in the $10 million to $50 million range. The company cited a high debt load connected to its acquisitions of Fulghum US and Fulghum SA in 2013.