While the New York Knicks were making headlines for their NBA Finals victory earlier this month, Mitch Modell found himself in a difficult conversation with the new owner of Modell’s Sporting Goods. This marked the end of several months of unsuccessful attempts to regain control of the struggling retail brand, according to reports.
Modell, who was previously CEO of the sporting goods chain that declared bankruptcy and shut down 140 stores in 2020, announced on Monday the launch of an online apparel site, which features T-shirts celebrating the Knicks’ championship.
The negotiations to purchase the 137-year-old brand, well-known for its catchy “Gotta Go to Mo’s” slogan, ended on a sour note, as sources revealed to the publication.
On June 12, just a day before the Knicks secured their title, Modell was texting Raj Gupta, head of Omni Retail Enterprises, who took over Modell’s in 2023. The situation became tense as the Knicks’ merchandise frenzy reached a peak but their online store faced technical difficulties.
“Model’s website is down for maintenance??? Everyone asking where they can buy shirts,” Modell texted, expressing his frustration. “You blew it. I hope you choked.”
Gupta’s response was terse: “Please stop emailing me,” followed by a reminder to back up their site.
The last message exchanged was a thumbs-up emoji from Modell, after a drawn-out negotiation process that included an unsigned purchase agreement from Gupta’s attorneys.
Modell, whose great-grandfather founded the brand in 1889, initially tried to reclaim the business back in 2024, even making several bids ranging from $500,000 to $1 million later on.
Although Gupta seemed open to the idea, things hit a snag when he claimed that the “this price will never be offered again” and chose to continue running the business themselves.
In the midst of ongoing discussions, Modell sought access to customer and sales data, stating, “I told him I’d give him $1 million, and I said, ‘Please tell me how many emails you get from my clients.’”
As the two went back and forth, Modell took to texting Gupta about the odd timing of selling coolers in December, showcasing his irritation.
“We went back and forth,” he recounted. “He put me in stasis for two months.” Gupta, in his defense, noted he was overloaded with work and hadn’t transferred customer data until March.
After many weeks, their exchanges heated up, coinciding with the NBA Finals. Gupta confirmed the text conversation but refrained from going into detail, stating simply that the deal fell apart because Modell didn’t meet their agreed terms.
Modell’s Sporting Goods was originally purchased out of bankruptcy by Retail Ecommerce Ventures in August 2020 for $3.6 million, led by entrepreneur Tai Lopez and his partner Alex Mehr, a former NASA scientist.
Gupta acquired these assets from REV in late 2023, just as the company began facing legal troubles and investigations.
Interestingly, Modell now has a $20 T-shirt for sale that features a New York pigeon, dubbed “Nodels.” He emphasizes that he doesn’t own a retail brand or have a licensing deal with the Knicks or the NBA.
Sales from these shirts will contribute to cancer research, specifically supporting the cause tied to the losses of his father and brother. Each ticket sold contributes $5 toward this important research.
In a statement on Monday, he mentioned that this online venture signifies his return to retail. “Just like our beloved Knicks came back from San Antonio down 30 points, it’s about believing that failure doesn’t have to be final,” he shared, reflecting on themes of resilience and recovery.
