Kelme faced another turn in its chapter of resilience. A commercial entity, New Millennium Sport SL, assumed the brand’s marketing and distribution duties in Spain after a rescue operation orchestrated by the Generalitat in 2008 to prevent the brand’s disappearance. This latest development followed a formal request in October 2021, aligned with creditor agreements. An already approved settlement, ratified by the Alicante Commercial Court No. 3, and published by the BOE, marks a pivotal moment for the company.
The company expressed satisfaction with the signed agreement, which received backing from more than 75% of creditor voting rights. The settlement safeguards ongoing operations and preserves roughly 45 jobs, contingent on the plan reaching full execution.
As part of the agreement, the company undertook an 88% reduction of its debt, setting a ten-year repayment window with a three-year grace period for the remaining balance, according to the office of the bankruptcy manager. This restructuring reduces liabilities to under 3.5 million euros, a level managers deem highly workable given the circumstances.
The sportswear and footwear group notes solid prospects ahead once the bankruptcy period concludes. Reported figures from official sources show last year’s sales approaching 10 million euros, with growth described as “double digits” and expectations of revenue increases exceeding 20% in the current year.
The strategic emphasis remains on Kelme’s core in indoor soccer, a focus that has long defined the business. The brand continues to promote football and maintains Espanyol as a sponsored partner from Barcelona. Beyond football, the company sees opportunities to expand in basketball and to broaden its footprint in Spain, with some overseas distributors already pursuing growth paths.
New Millennium Sports filed for voluntary bankruptcy in October 2021 and has since been ordered by the Alicante Provincial Court to pay 3.2 million euros to a former licensee in Panama. The ruling followed a downturn in turnover during 2020, a year hit hard by the pandemic. The company has, among other support, the backing of the Yuanxiang group, which oversees distribution and licenses in Asia.
public rescue
The brand’s rescue involved two entities founded in 2008. The Generalitat’s intervention enabled a second recovery phase and a renewed effort to pull the brand back from debt’s grip. A regional program created to stabilize Kelme involved Aguamarga Urban Developments, IVF, CAM, and Bancaja, which acquired land in a salt marsh associated with the brand to reduce indebtedness. It came at a significant fiscal cost to the public treasury as the land remained protected and was never reclassified. The heirs of the Valencian savings banks—Sabadell and Bankia—demanded guarantees, with the final cost to the Consell reaching 39 million euros.
Chinese group Yuanxiang acquires 80% of Kelme
Separately, New Millennium Sports is linked to the Tirant fund, which organized the management structure. Riva, Gacia, and IVF directed the transfer of most industrial activities and the brand’s sales network. To secure liquidity, the company transferred distribution rights and licenses to the Chinese group Yuanxiang through Kelme Sports, which has maintained normal operations. Consequently, New Millennium Sports now oversees Spain’s brand distribution.
Among the creditors is the Valencia Institute of Finance, owed 6.3 million euros, whose terms will be impacted by the settlement and payment schedule approved in the court ruling.