The sporting goods retail sector has faced bankruptcies, store closings and liquidations in recent years that have included iconic names, like Sports Authority, Sports Chalet, Model's and Golfsmith.
Sports Authority, which operated 463 stores nationwide, filed Chapter 11 in 2016, liquidated and was sold to Dick's Sporting Goods, operator of over 850 locations. Dick's also purchased the Golfsmith chain out of bankruptcy that same year.
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Regional sporting goods retail chain Sport Chalet, which operated 47 stores in California, Arizona, Nevada and Utah, also filed Chapter 11 bankruptcy 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 11 protection on March 11, 2020, just as the Covid-19 pandemic was starting.
Modell's began store closing sales on March 13, 2020, but shortly after starting liquidation sales, the pandemic forced the chain to stop the sales and shut down operations. The sporting goods chain finally reopened its liquidation sales in late June 2020.
Finally, Mountain Sports, which operated about 50 sporting goods and apparel stores in seven Northeast states under the Eastern Mountain Sports and Bob's Stores brands, on June 18 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy 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 $29.4 million under a revolver and first-in-last-out facility and had been current on its payments until the petition date, according to a declaration from CEO David Barton.
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Mountain Sports, which was 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 for reliable and functional outerwear and gear at a value price," Barton wrote in his declaration. "Bob's targets moderate-income customers with a selection of footwear, workwear, teamwear and activewear.
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Mountain Sports on July 2 revealed that it would close and liquidate all Bob's Stores, but did not state what was happening with EMS. Later in July, it closed six EMS stores, but the fate of any remaining stores remained uncertain.
Mountain Warehouse, an outdoor gear and apparel company based in the United Kingdom made a stalking-horse bid for the assets of EMS, which called for two-thirds of the chain's locations close.
"Eastern Mountain Sports (EMS), a cornerstone of the outdoor retail industry, announces that Mountain Warehouse, a global leader in outdoor gear and apparel, has emerged as the stalking horse bidder in its acquisition process. Mountain Warehouse seeks to continue operating seven stores under 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 preserve EMS's storied legacy and continuing to serve the outdoor community. The remaining EMS locations are set to close, and inventory is available 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, website and the seven profitable stores, for $5 million, along with another $5 million for other assets not mentioned in the statement.
The acquisition will save more than 100 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 was founded in 1967 in Wellesley, Mass., and grew over the years by partnering with leading outdoor brands like The North Face, Smartwool and Oboz. The company ran into trouble after GoDigital purchased the retail company in May 2022. The deal was funded by debt, causing financial distress and forcing it to file Chapter 11.
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