MAJOR | Another NHL huge sponsor files for Bankruptcy
Just before the start of the 2023-24 season, one of the National Hockey League's biggest sponsors, BioSteel, has filed for creditor protection in the United States and Canada and is seeking a new buyer.
Canopy Growth, a North American cannabis company which owns BioSteel announced on Thursday that they've ceased funding to the sports drink company.
BioSteel was founded in 2009 by former NHLer Mike Cammallari and John Celenza, and ten years later was taken over by Canopy Growth.
They explained that their decision to file for creditor protection was because they did not have access to funding for the brand anymore.
"No longer has access to funding for the brand, which continued to generate negative operating cash flow," they said.
"BioSteel made the decision to conserve cash and put the business into hibernation to preserve its assets. BioSteel sought creditor protection under the CCAA to conduct a court-supervised sale process for its business and property for the benefit of its stakeholders."
"BioSteel made the decision to conserve cash and put the business into hibernation to preserve its assets. BioSteel sought creditor protection under the CCAA to conduct a court-supervised sale process for its business and property for the benefit of its stakeholders."
BioSteel's sales have skyrocketed during 2023 and in the first three months of the year, they made roughly $24 million in sales, double what they made in the same period in 2022. Since the 2019 takeover, Canopy Growth has spent $366 million on BioSteel and goes through roughly $15 million each month.
The National Hockey League and BioSteel agreed on a multi-year contract in 2022 that saw them become the official hydration partner. But their most recent payment to the NHL as part of their deal, which was due on September 1st, has not been paid.
Source: CBC
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