Mitch Modell, the former CEO of the famed New York sporting goods chain that went belly-up four years ago, wants to buy bankrupt retailers Party City and Big Lots.
Modell — whose family-run company featured the buzzy “Gotta go to Mo’s” jingle — is looking to raise $1 billion to bid to throw a financial lifeline to the flailing businesses, he told The Post on Monday.
Party City and Big Lots, which both filed for Chapter 11 protection in recent months, operate a combined 1,600 stores and employ a total of 33,000 workers.
Modell, 70, said he was at President-elect Donald Trump’s Mar-a-Lago resort on Dec. 19 when he got the idea to buy the legacy retailers and put his sons, Matthew, 23 and Maxwell, 22, in charge as co-presidents of the new company, he told The Post.
He has lined up a veteran team of executives to evaluate a possible deal — including Larry Meyer, former chief executive of Forever 21 and Uniqlo, and Demos Parneros, ex-CEO of Barnes & Noble.
“Our goal is to save 33,000 jobs,” Modell told The Post, adding that he is not putting in any of his own money.
Modell, whose family founded the company more than 130 years ago, believes he can revive Big Lots and Party City by offering largely the kind of merchandise his stores sold before filing for bankruptcy protection in 2020.
He would keep the retail brand names but get rid of the bulky furniture Big Lots is known for, while Party City would sell footwear and other sports apparel in addition to its core party supplies business, Modell told The Post.
To provide rock bottom prices, he intends to turn to inexpensive foreign manufacturing from Source One Global, which has factories in China, Mexico and India, Modell said.
“Our sourcing capability is the difference maker,” he boasted, adding that he didn’t have this relationship with Source One Global when he was running Modell’s.
New Jersey-based Party City filed for bankruptcy on Dec. 20 for the second time in two years. Ohio-based Big Lots filed for bankruptcy in September.
Over the weekend, Big Lots struck a $490 million deal with Gordon Brothers Retail Partners and Variety Wholesalers that would save up to 400 stores. A bankruptcy hearing scheduled for Monday was adjourned for one day, according to court records.
Modell said he spoke with representatives of Gordon Brothers informing them that “I’m not going away and we want to be your partners.”
One person advising Modell said he likely will be iced out by Gordon Brothers.
“I think it’s too late for Big Lots,” the source said. “Mitch started very late and he needs time to raise cash.”
Over the past several years, Modell and his sons became involved in a number of ventures, including a 50% stake in a Game Time Watches, a watch licensing business that partners with several professional sports leagues; a trash bag company, Apex, that has an exclusive deal with Delta Airlines, and a produce company that imports non-refrigerated items like like bananas and avocados.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
