We can draw only one conclusion from the bankruptcies of Sports Authority and the parent company of Eastern Mountain Sports, Bob’s Stores, and Sport Chalet: Apparently, Americans have stopped going outside. Or maybe there’s some kind of larger business issue with the sporting-goods business sector. Probably the second thing.
Surf gear company Quiksilver USA declared bankruptcy earlier this year, and Sports Authority has closed 140 stores and is navigating either a sale or reorganization of its business.
The parent company of the sporty trio, Vestis Retail, is owned by private equity firm Versa Capital Management LLC. The ever-insightful “people close to the matter” have told Bloomberg News that the bankruptcy could happen as early as next week, but didn’t have anything to say about the company’s plans or whether the stores would stay open.
Versa is a private-equity firm that specializes in companies in trouble, and acquired the three chains in the last decade to build a nice company of outdoors retailers.
Eastern Mountain Sports Said to Be Headed for Bankruptcy Court [Bloomberg]
by Laura Northrup via Consumerist
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