Popular bankrupt retail chain won’t have to close down after all

The sporting goods retail sector has faced bankruptcies, store closings and liquidations in most up-to-date years that have included iconic names, like Sports Authority, Sports Chalet, Model's and Golfsmith.

Sports Authority, which operated 463 stores nationwide, filed Chapter eleven in 2016, liquidated and develop into sold to Dick's Sporting Goods, operator of over 850 locations. Dick's also purchased the Golfsmith chain out of financial disaster that same year.

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Regional sporting goods retail chain Sport Chalet, which operated forty seven stores in California, Arizona, Nevada and Utah, also filed Chapter eleven financial disaster in 2016 and closed all of its stores and liquidated.

Regional sporting goods retail icon, Modell's, which operated 153 stores in the Northeast and Mid-Atlantic states, filed for Chapter eleven protection on March eleven, 2020, just as the Covid-19-19 pandemic develop into starting.

Modell's began store closing sales on March thirteen, 2020, but almost immediately after starting liquidation sales, the pandemic forced the chain to forestall the sales and shut down operations. The sporting goods chain at last reopened its liquidation sales in late June 2020.

Finally, Mountain Sports, which operated about 50 sporting goods and apparel stores in seven Northeast states less than the Eastern Mountain Sports and Bob's Stores brands, on June 18 filed for Chapter eleven financial disaster in the U.S. Financial disaster Court for the District of Delaware to restructure its debt and reorganize its business after defaulting on a loan agreement with PNC Bank.

The Meriden, Conn.-based retail chain owed PNC $29.Four million less than a revolver and first-in-last-out facility and had been current on its payments until the petition date, based on a declaration from CEO David Barton.

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Mountain Sports, which develop into owned by parent company GoDigital Media, also owed $26.6 million in unsecured claims.

Eastern Mountain Sports, or EMS, marketed itself to the "adventurer looking out reliable and functional outerwear and equipment at a value price," Barton wrote in his declaration. "Bob's targets moderate-income customers with a range of footwear, workwear, teamwear and activewear.

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Mountain Sports on July 2 revealed that it is able to close and liquidate all Bob's Stores, but failed to state what develop into going on with EMS. Later in July, it closed six EMS stores, but the fate of any remaining stores remained uncertain.

Mountain Warehouse, an out of doors gear and apparel company based in the United Kingdom made a stalking-horse bid for the assets of EMS, which referred to as for 2-thirds of the chain's locations close.

"Eastern Mountain Sports (EMS), a cornerstone of the out of doors retail industry, announces that Mountain Warehouse, a global leader in out of doors gear and apparel, has emerged as the stalking horse bidder in its acquisition process. Mountain Warehouse seeks to continue operating seven stores less than the Eastern Mountain Sports name," the companies revealed in a dual statement.

The deal would keep seven profitable EMS stores operating, but close the chain's 14 other stores.

"This highlights their commitment to maintain EMS's storied legacy and continuing to serve the out of doors community. The remaining EMS locations are set to shut, and inventory is offered at incredible discounts at all locations," the statement added.

Mountain Warehouse buys Eastern Mountain Sports

Mountain Warehouse followed through with its proposed purchase of EMS assets as it on Sept. 2 revealed in a statement that it had purchased the bankrupt chain's key assets, including the long-established brand name, web site and the seven profitable stores, for $5 million, together with any other $5 million for other assets no longer mentioned in the statement.

The acquisition will save greater than a hundred jobs, and the buyer said it plans to stabilize and grow the chain's business.

Mountain Warehouse said that EMS will continue operating as a standalone brand in the company's group and the stores will maintain their Eastern Mountain Sports brand name on store locations.

EMS develop into founded in 1967 in Wellesley, Mass., and grew over time by partnering with leading out of doors brands like The North Face, Smartwool and Oboz. The corporate ran into trouble after GoDigital purchased the retail company in May 2022. The deal develop into funded by debt, causing financial distress and forcing it to file Chapter eleven.

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