Modell Sporting Goods will be closing all of its stores. The announcement comes after the 130-year-old athletic gear company sent letters to more than a dozen landlords last month asking them to “dig deeper” to help the family-run chain avoid bankruptcy. CEO Mitchell Modell blamed the “extremely challenging environment for retailers” for the decision, according to CNN. Before declaring bankruptcy, last year, Mitchell Modell loaned $6.7 million of his own money to the business in an effort to salvage it.
In related news, Carl Ichan is betting big against commercial real estate. “You’re going to have this blowup, too, and nobody’s even looking at it,” Icahn said on CNBC. The investor revealed that he’s shorting the commercial mortgage bond market, noting that it was his “biggest position by far.” Icahn, who Forbes estimates is worth $15 billion, is focusing his bet on credit default swaps on assets that back mortgages of corporate offices and malls. He believes that the malls and other commercial real estate operators would soon default on those loans, starting a free fall. “It’s like selling insurance to someone who’s going to go to the electric chair in a couple of months,” he said. Definitely a statement that would come from Carl Ichan #corporateraider