Last week, Tactical Holdings filed for Chapter 11 Bankruptcy protection in Federal Court in Wilmington, DE. The brands under Tactical Holdings include well known FR clothing manufacturer Massif as well as footwear makers Wellco and Altama as well as other companies Tactical Intermediate Holdings Inc, Tactical Holdings Operations Inc, Ro-Search Inc, Mo-Ka Shoe Corp, and Massif Holdings LLC. As you may recall, Ro-Search developed the Panama sole used in the old jungle boot.
Fortunately, they were given permission to use up to $3.5 Million in loans from Wells Fargo to pay vendors in order to keep things going through the process.
At face value this looks pretty scary for these brands but Massif may well come out of this situation stronger than before. While all brands were given until the end of July to find buyers, Massif has already been courted by Sun Capital Partners, who owns Point Blank Solutions, Protective Products Enterprises, Paraclete, Kelty, Sierra Designs, Slumberjack, Ultimate Direction and Royal Robbins. These guys know how to do it. Dow Jones reports that Sun Capital Partners has a $13 Million offer for Massif. As I understand it, Massif will go to auction soon with Sun Capital Partners as keen bidders who wish to nurture the business alongside its other holdings.
In a telephone interview with Noelle Christensen of Massif, she related, “As you know, we’re part of a larger corporate group, including footwear brands Wellco and Altama. The corporation, along with all entities, filed Chapter 11 last week. This court process will divest Massif from Tactical Holdings and Massif will be proceeding with an auction soon, to determine if Sun, or another investor, will be taking ownership.
Massif is a strong company and we’ll remain strong after this process is complete. As mentioned in the court filings, Massif received approval to pay vendors deemed critical during this process, so we can continue to deliver high-performance protective clothing to the warfighter.”
Unfortunately, the outlook isn’t as good for the footwear brands. Declining contracts and an investigation last year into sourcing of footwear has led to layoffs at Wellco. If they can’t find a buyer, DoD contracts will be moved elsewhere.
I would say that assuredly, Tactical Holdings as we know it, will cease to be. Things look promising for Massif who may find a new home alongside other PPE manufacturers. However, considering the crowded tactical footwear market, we are unsure who might go after not one, but two boot makers.
Tags: Altama, and Massif Holdings LLC, Massif, Mo-Ka Shoe Corp, Ro-Search Inc, Tactical Holdings, Tactical Holdings Operations Inc, Tactical Intermediate Holdings Inc, Wellco
You know, it’s interesting to see how many brands come out when a thread is pulled. That’s the nature of LLC, I suppose.
Too bad about Wellco. I like their boots. I think they’re one of very companies left who produce a true jungle boot with the Panama sole.
That really is too bad about Wellco. When the Ferguson family ran things there I really enjoyed working with them. Hoping for the best to come out of this for Wellco.
As a employee at a retailer that carried wellco, the company was not to great to deal with. Not saying anything about the quality of their boots, but we stopped ordering from wellco a while ago because of the way things were done.
There’s a new owner. Maybe you should take another look.
If Altama goes under because of this I’m gonna be fuckin pissed, I’ve been wearing their 3LCs for work and home use over the last five years and then some.
Aaah yes Private Equity (Golden Gate Partners) doing its thing once again.
Not real capitalism.
This wouldn’t matter if skilled people doing work of value weren’t losing their jobs.
Of course, if Army had it’s schtuff together, they’d have a fat order for Coyote boots…
SSD, what were sourcing issues with Wellco, and was it just Wellco or Altama too? Thanks in advance for answer.
As I understand it, they sourced leather for contract boots (RAT boot) from China. I believe it was only Wellco.
I loved the Massif clothing line – I wear it religiously. I was worried when they started doing big clearances.
Hope they make it thru OK.