The organization behind The M Den chain of retail outlets selling official University of Michigan merchandise has filed for Chapter 11 bankruptcy.
As reported by the Detroit Free Press, 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 missed rent payments and unpaid bills.
While Michigan merchandise sold well following the football team's 2023 NCAA National Championship, financial issues have been mounting for the retailer, the Free Press reported.
According to reporter Liam Rappleye, the largest known claim against the organization comes from a sportswear manufacturer in Kansas that says The M Den and its co-owner and president Scott Hirth 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 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, Rappleye reported.
"We hope the sale can be concluded quickly and can be announced very soon," the statement reads, as reported by the Free Press.
The M Den will remain open during the bankruptcy filing.
On Wednesday, the Free Press reported that a Michigan 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 the university plans to continue to operate using The M Den store name despite new ownership. In addition to merchandising, New York-based Legends is known for its venue planning, sponsorship and hospitality divisions.
