The clock is ticking on Denver-based XP Events, the bankrupt sports-merchandise company co-founded by Alan Fey, the son of prominent concert promoter Barry Fey.
The trustee in the company’s Chapter 11 reorganization moved on Monday to convert the case to a Chapter 7 liquidation, asserting that XP has “suffered a substantial loss or diminution with no reasonable likelihood of rehabilitation” and “has been grossly mismanaged.”
XP filed for bankruptcy in September under its registered name, XP Entertainment. The company sold most of its assets to Gameday Entertainment in January, according to court filings.
Gameday paid $5.5 million for XP’s merchandising contracts with five professional sports teams and the 2010 Winter Olympics, among other assets, SportsBusiness Journal reported in January.
However, XP said in a February court filing that it posted a gain of $1.4 million from the asset sale.
Gameday is a creditor in XP’s bankruptcy with an unsecured claim of $500,000. Creditors include Major League Baseball’s Arizona Diamondbacks, the NFL’s Jacksonville Jaguars and the NBA’s Charlotte Bobcats and Oklahoma City Thunder.
Alan Fey, who served as XP’s president, and Lee Kutner, the company’s attorney, didn’t return phone calls Monday. The initial bankruptcy filing was signed by William Wall, listed as XP’s manager.
Fey joined Gameday after the January asset sale, according to SportsBusiness Journal.
He made his mark when he helped launch the sports-merchandising arm for Anschutz Entertainment Group, owner of the Staples Center in Los Angeles, in 2000. He left AEG in 2005 to start XP, which handled merchandise sales for pro franchises and sporting events such as the Tour de France bicycling race.
XP posted an operating loss of nearly $243,000 on sales of roughly $144,000 in January, according to the most recent operating report filed in court.
Andy Vuong: 303-954-1209, avuong@denverpost.com or
