According to Diffusion Sport, New Millennium Sports has asked the third commercial court of Alicante, in the Spanish autonomous community of Valencia, to allow it to enter into bankruptcy protection proceedings. The former owner of the Kelme brand, which has a contract for its dstribution in Spain, seeks to avoid a fine of $3.2 million – levied by the provincial court of Alicante on Sept. 14 – for breach of contract with a former distributor in Panama back in 2007. The move appears to be a way of temporizing, however, as New Millennium intends to appeal the commercial court’s decision before the supreme court. Sources within the company have told Diffusion Sport that the management is drafting a restructuring plan and negotiating with its creditors, so as to guarantee the brand’s viability and keep its staff of 35 on the payroll. The maneuvering comes just as the company’s annual revenues have plunged by half, from about €12 million in 2019 to about €6 million last year.
New Millenium Sports acquired Kelme after its salvaging in 2008 by Generalitat Valenciana through Tirant, one of the private equity firms owned by the Riva & García financial group. In 2019 New Millennium sold the brand and its licenses to a new company, Kelme Sports, which is majority owned by China’s Yuanxiang group. Tirant holds a minority share. Kelme Sports has no stake in the aforementioned legal disputes, as New Millennium’s only business with the company is to distribute Kelme brand products in Spain. Kelme Sports handles distribution in all other parts of the world as well as Kelme’s sponsorships, even in Spain (Espanyol de Barcelona, Alavés, Baskonia).
