Yesterday afternoon, Judge Sontchi of the The Bankruptcy Court of Delaware, approved the sale of Tough Mudder to Spartan Race. As we had reported on Feb 12, The Trustee appointed in this case, had filed a motion encouraging the sale go through based on Spartan’s offer to purchase the company, get employees back to work, and events up and running as soon as possible.
In the two week interim, there were some objections which the Trustee was able to resolve prior to the 1:00pm EST hearing yesterday. One objection was from Navy Federal, who re-signed a sponsorship deal with Tough Mudder prior to the bankruptcy, and wanted to be sure they had an equitable deal for the new partnership moving forward. Another was from Raceway Park, the legendary venue in Englishtown, New Jersey, that has held several Tough Mudder events including the first 3 World’s Toughest Mudders. Raceway Park’s previous arrangement was exclusive with Tough Mudder, and now the venue wanted to be open to holding Spartan events as well.
The Trustee’s recommendation was read to the judge by the Trustee’s council. He read in part, “It is anticipated that Mr. McLaughlin will be named CEO of the buyer and continue to manage the Tough Mudder brand business. Also in the days leading up to this sale, Spartan hired many of Tough Mudder’s former employees and intends to engage several additional key employees of Tough Mudder in order to successfully put on at least six of the previous schedule 2020 Tough Mudder events. He went on to say that “If the sale is approved these employees will become employees of the buyer and have the expertise to perform the obligations under the assumed contracts. These talented employees are familiar with the assumed contracts and assumed events and their know-how provides adequate Assurance of future performance.”
All was well received by the judge who prior to the ruling joked “Not that you would know it looking at me, but I’ve done a couple marathons”. He went on to say that “I’ve enjoyed watching The Spartan Races on television and that he was “particular impressed with Spartan reaching out to differently abled people”
His ruling stated “The overwhelming uncontroverted record supports the process, supports the noticing, supports the price, supports the assumption of the contracts, and supports the adequate assurance and good faith and appropriateness with regard to approving the sale to the Spartan entities”
He went on to state “I do consider the sale of the business…a resuscitation of this business, to become a growing concern, as a reorganization that preserves jobs, preserves an interesting product, that provides a lot of satisfaction to it’s participants. I am very happy indeed to sign The Order and I have approved it.”
Entered into the record as you read above was a promise of at least 6 events. As of this morning, Tough Mudder updated their US website to include the following 8 Tough Mudder event weekends. At post time, tickets are yet not on sale, but we have been told tickets could be turned on as early as the end of the week. Here are the current weekends listed on the website.
Virginia May 30-31
Twin Cities July 11-12
Chicago Aug 22-23 (including Toughest 12 hour Chicago)
Tristate Sept 12-13
Seattle Sept 19-20
Dallas Oct 31, Nov 1
WTM Nov 7 and 8
So Cal Nov 14-15
Kyle McLaughlin has been reinstated as CEO and said “We’re very excited that the court approved the terms of the deal spartan had in play with the Trustee. With that behind us, we’re going to get everyone back to work to restore Mudder Nation and come back stronger and better than ever.”
Joe Desena is currently at the UK Mudder offices and told ORM “Was surreal being in the offices today- love the team- it’s going to be great.”
For questions about Tough Mudder UK schedule, click here.
For questions about refunds for cancelled events, click here.
Stay up to date with all of the Tough Mudder news, and how we got to this point here.
*Cover art by Mike Muday