Sports Figure Selling Memorabilia in Wake of Business Bankruptcy
The aftermath of a business bankruptcy for a video game business has seen its owner, famous former Red Sox baseball pitcher Curt Schilling, selling off personal items, including a limited number of items of sports memorabilia, possibly to try to satisfy company creditors. His business was known as 38 Studios and it went into bankruptcy in the early part of 2012.
Schilling, who pitched for the team widely regarded as the nemesis of the New York Yankees, even sold a bloody sock that was on his foot while on the pitcher’s mound on the occasion of a game in the 2004 World Series, which he won. It brought in over $92,000 at auction. He is also selling a lot of other more ordinary household items from his home, ranging from plants to a microwave and vacuum cleaner, along with sports items like baseballs, bobbleheads, and one of his bathrobes.
He and his family have opted to downsize their possessions, including one home now listed at $3 million, a far cry from its prior price of as high as $8 million or even its original $4.5 million purchase price. It is unclear to what extent the sale will generate funds to satisfy company creditors.
After Schilling retired from sports, he founded the video game company, which obtained $75 million in loans from a state economic development agency. The company filed for bankruptcy after missing a loan payment on that obligation, along with laying off approximately 400 employees. When debt obligations are more than a business can pay, bankruptcy can offer a fresh start and reorganization on a more viable basis to attempt to continue the enterprise, or else a way of shutting the business down in an orderly fashion.