Latest News

Back to Latest News back

 

Tough Mudder resumes operations in Europe as administrators appointed

Tough Mudder resumes operations in Europe as administrators appointed
January 27, 2020

Staff at the European affiliate of Tough Mudder have returned to work today (Monday 27th January) after Michael Solomons and Andrew Pear of restructuring, recovery and insolvency specialists, BM Advisory LLP, were appointed joint administrators of the business.

The USA-based Tough Mudder and its UK-based European operation are now the subject of parallel bankruptcy proceedings after a standoff between the company’s co-founders, Will Dean and Guy Livingstone, and its largest lender Active Networks caused the company to cease trading.

Earlier this month Dean and Livingstone were accused of placing the company in a state of paralysis and ignoring the interests of creditors in holding out for a larger share of the company’s proposed sale to rival Spartan Race.

Spartan made a ‘seven-figure’ offer for Tough Mudder in November last year and agreed to acquire the trade debt across all Tough Mudder entities. However, the disagreement about the sale caused the company and its European, Canadian and German affiliates to suspend registrations and ‘go dark’ towards the end of last year.

Registrations cannot currently be made on the US Tough Mudder website, with it advising that registrations are ‘offline’.

The appointment of the UK administrators comes just days after the judge presiding over bankruptcy proceedings against the US wing of the company filed an order on 24th January directing the appointment of a Chapter 11 trustee.

The administrators at BM Advisory have restarted operations at the European wing (Tough Mudder Ltd), which is a separate legal entity, with a view to selling the business and its assets, including its wholly-owned German subsidiary, as a going concern.

Spartan Race has supported the European subsidiary’s administration process with the necessary funding to resume trading. The joint administrators have also engaged both Giles Chater and Kyle McLaughlin, formerly of the Tough Mudder Ltd management team, to support the business going forward while a sale is achieved. Under the administrators, ticket sales are planned to re-open mid-week.

The deadline to register an interest in purchasing the business and assets of the European affiliate is the end of this week and interested parties should contact Bryn Carroll of Gordon Brothers.

Spartan remains the most likely buyer for the US and European parts of the business, provided the US business resumes operations soon.

A separate sale of the European affiliate would be complicated by the fact that the Tough Mudder brand and its intellectual property is controlled by the US branch.

Spartan Race has generously supported Tough Mudder’s administration process with the necessary funding required to resume trading. The Joint Administrators have engaged both Giles Chater and Kyle McLaughlin, formerly of the Tough Mudder Ltd management team, to support the business going forward whilst a sale is achieved. Under the Administrators, ticket sales are planned to re-open mid-week and the Tough Mudder team returned to work today.

Commenting on the administration, Solomons advised “Tough Mudder has a very strong brand and presence in the obstacle race industry. I am confident that a sale of the business will be achieved shortly and envisage that a purchaser will move forward with plans to deliver all existing events in the 2020 European calendar.”

Tough Mudder franchises in Australia and Croatia, which Australasian Leisure Management understand operate as separate franchises, continue to operate, with entries for 2020 events still possible on the Tough Mudder Australia website.

Tough Mudder's Australian operations have not responded to requests for information on its present status.

Parties interested in purchasing the business and assets of Tough Mudder Ltd should contact Bryn Carroll of Gordon Brothers on 020 7647 5141 or bcarroll@gordonbrothers.com.

Images: Tough Mudder event in Dubai (top) the USA-based Tough Mudder international website as of 2.15pm, 28th January 2020 (below). 

Related Articles

21st January 2020 - Creditors push Tough Mudder towards bankruptcy and sale to rival Spartan

20th December 2019 - New Spartan Race format to make Australian debut at Melbourne’s Marvel Stadium

7th December 2019 - CrossFit wins US$4 million in damages in ‘false and fabricated data’ court case

23rd September 2019 - Operators of Fernwood Loganholme enter administration owing $1.1 million

5th September 2019 - Anytime Fitness and Tough Mudder reveal new partnership

13th February 2019 - Tough Mudder signs with ONTHEGO as Australia apparel partner for the next three years

23rd January 2019 - Tough Mudder looks to secure capital investment for linked fitness club brand

14th May 2018 - Tough Mudder to expand in Middle East with Oman events

9th February 2018 - Spartan Race announces first ever season of events in China

16th September 2017 - Tough Mudder Chief Executive releases account of building his obstacle race movement

7th May 2017 - Spartan race event expected to attract 4,000 participants in Western Australian return

12th February 2017 - Sage Institute of Fitness enters voluntary administration

18th August 2016 - ACTIVE Network introduces community-based fitness app

31st July 2016 - Tough Mudder creator slams Australian red tape

23rd July 2016 - Tough Mudder to hold first event in Bali

20th July 2016 - Tough Mudder to launch in Dubai in December

17th June 2016 - Tough Mudder looks to Asian and Middle East expansion with IMG partnership

11th November 2015 - Muddy fun as Mudderella stages first Australian event

17th May 2015 - Simonds Stadium to host Spartan Race in December

26th January 2015 - Reebok Spartan Race Series to stage first event in Dubai


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

TICKETSERV

As of 2018, TicketServ operates as SeatGeek Asia Pacific Pty Limited, part of international ticketing platform SeatGeek. Click here to contact SeatGeek Asia Pacific via their entry in…

read more

Attractions / Entertainment / Events / Sport / Ticketing

 
 

Digonex

Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…

read more

Attractions / Entertainment / Sport / Technology / Ticketing

 
 

Anti Wave International

Anti Wave International is the original suppliers of top performance swim, aquatic sports, leisure and pool programming equipment. Founded in 1971, Anti Wave International is proud of its…

read more

Aquatics / Play / Sport

 
 

Goplay Commercial Playground Equipment

Goplay designs and manufactures specialised playground equipment for indoor play centres, hotels, food chains, clubs and resorts. If our years of experience and dedication have taught us one thing,…

read more

Play

 
 

WATERPLAY Solutions Corp

Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…

read more

Aquatics / Attractions / Play / Recreation / Waterparks

 
 

Perfect Gym

Perfect Gym Solutions is a software as a service (SaaS) solution purpose-built to service the fitness industry, with over 1000 clients servicing over 2 million gym members across 40 countries making…

read more

Access / Fitness / Marketing / Recreation / Technology

 
 

Summit Fitness

Summit Fitness Equipment is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/

read more

Fitness / Recreation / Technology / Wellness

 
 

IEDM

iEDM integrate Design, Engineering and Delivery Management services to convert existing spaces into exciting new entertainment venues. Our team consists of highly qualified professionals with diverse…

read more

Consultants / Design

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business