BREAKING: Major Sponsor of The NHL Files For Bankruptcy Protection

Published September 14, 2023 at 3:09 PM
BY SKY
     
Biosteel Sports Nutrition, a significant player in sports nutrition, has filed for bankruptcy protection, signaling a pivotal moment in its journey. The move comes in response to financial turmoil exacerbated by Canopy Growth's decision to cease funding the company's operations. Canopy Growth, primarily associated with the cannabis industry, owned 90% of Biosteel's equity. The financial strain of supporting Biosteel contributed to approximately 60% of Canopy Growth's first-quarter losses.

As a result of this financial hardship, Canopy Growth anticipates annual cash savings exceeding CDN$100 million ($74 million). Unfortunately, this cost-saving measure includes laying off 181 Biosteel employees, out of the 190 employees the company had as of the previous month.


Biosteel's roots are firmly embedded in the world of hockey, having been founded in 2009 by entrepreneur John Celenza and former NHL player Mike Cammalleri. The company made a name for itself by directly supplying NHL teams with its sports drink, challenging Gatorade's official partnership with the league. BioSteel also secured endorsements from NHL stars like Connor McDavid, Nathan MacKinnon, John Tavares, and Connor Bedard, the top pick in the 2023 NHL draft.


Biosteel aimed to carve a niche in the competitive sports drink market, striving to attain the fourth market position behind Gatorade, BodyArmor, and Powerade, which collectively controlled 98% of the U.S. sports drink market in 2022.


In conclusion, Biosteel's bankruptcy protection filing reflects its struggle with financial challenges and the repercussions of Canopy Growth's withdrawal of support. As the company embarks on a court-supervised sale process, it faces uncertainty and opportunity in the dynamic sports nutrition landscape.
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September 14   |   80 answers
BREAKING: Major Sponsor of The NHL Files For Bankruptcy Protection

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Gatorade5265 %
Biosteel2835 %
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