The owner of sports drink company BioSteel has taken a significant step by filing for creditor protection in both the U.S. and Canada. This move raises concerns about the future of a once-prominent brand. Bettman announced Gatorade would no longer be the official beverage of the NHL just last year, as he introduced BioSteel.
BioSteel, founded in 2009 by entrepreneur John Celenza and former NHL player Mike Cammalleri, rapidly gained prominence through strategic marketing partnerships with numerous NHL, NBA, and NFL teams. Their collaboration with NHL stars like Connor McDavid, Nathan MacKinnon, John Tavares, and Connor Bedard, the 2023 No. 1 overall pick, further elevated the brand's status.
BioSteel's decision to initiate proceedings under the Companies Creditors Arrangement Act (CCAA) marks a pivotal moment. CCAA offers protection from creditors, allowing the company to restructure or wind down operations. For BioSteel, the latter option might be more plausible due to their substantial debt, largely stemming from marketing deals that may have done more harm than good.
With approximately $45 million in unsecured debts across various professional leagues and athletes, BioSteel's financial troubles are far-reaching. Notably, the National Hockey League (NHL) represents a significant portion of the debt, totaling $8.7 million.
Even as the NHL promoted the brand, replacing Gatorade as its official hydration partner, BioSteel signed separate agreements with six NHL franchises: the Anaheim Ducks, Carolina Hurricanes, Chicago Blackhawks, Columbus Blue Jackets, Pittsburgh Penguins, and Tampa Bay Lightning.
