Tough Mudder race runs on under new owner

21 February 2020 Consultancy.uk

Endurance event series Tough Mudder has seen its European operations sold out of administration, following the appointment of BM Advisory to oversee proceedings. Earlier in the process, Spartan Race had supported Tough Mudder by providing the necessary funding to resume trading – and the company has now bought up Tough Mudder.

Earlier in 2020, Tough Mudder was placed into administration in the UK, following accusations that its founders had ignored the interests of creditors by holding out for a larger share of the company’s proposed sale to rival Spartan Race. 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.

In late January, the judge presiding over bankruptcy proceedings against the US wing of the company filed an order directing the appointment of a Chapter 11 trustee. In the UK, the European operation of the company was also placed into administration, with BM Advisory administrators Michael Solomons and Andrew Pear opening the company back up for trading as a result.

Tough Mudder race runs on under new owner

Staff at the European affiliate of Tough Mudder have since returned to work, with Spartan Race supporting the process with the necessary funding to resume trading. In the meantime, supported by legal advisors from Penningtons Manches Cooper, the administrators also engaged both Giles Chater and Kyle McLaughlin – formerly of the Tough Mudder European management team – to support the business going forward while a sale was achieved.

Speaking after a deal was struck, joint administrator Solomons said, “We are very pleased to have achieved a sale that preserves the future of the Tough Mudder brand and enables the business to move forward with plans to deliver on its existing 2020 European calendar, for which a significant number of tickets have already been purchased by the loyal Tough Mudder community.”

Matthew Martin, Head of the corporate team at Penningtons Manches Cooper, added, “We’re delighted to have assisted the Administrators reach a deal with Spartan that ensures the much-loved Tough Mudder brand continues to thrive in the UK. It has been a pleasure to work with BM Advisory and the Spartan team and we wish the combined business every success in the future.”

The deal with Spartan Race ensures all jobs are saved in the UK and the scheduled 2020 season events will go ahead. The UK business of Tough Mudder will now operate as a wholly owned subsidiary of Spartan, and will continue to be run by its existing UK London-based management team of Managing Director Chater and Global CEO McLaughlin. The Germany subsidiary of Tough Mudder will continue to operate from the UK office, while its potential acquisition is discussed.

“Spartan’s dedication to obstacle course races, transformation and community is exactly what we need to persevere and we could not be happier with the acquisition,” said McLaughlin. “We’ve been impressed with strong sales in Europe over the past couple weeks and know that our community will share our excitement over the news heading into the 2020 Tough Mudder race season.”


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