Bankrupt: Eastern Mountain Sports files Chapter 11
Everlast owner SportsDirect may reorganize mall chain
In the latest retail failure sweeping America's depleted malls, camping/backpacking/sports-clothing store chain Eastern Mountain Sports and its affiliates, including Bob's Stores, have filed for Chapter 11 bankruptcy reorganization in Delaware.
Eastern has been "in extensive negotiations with SportsDirect.com Retail Ltd.," the British owner of Slazenger, Everlast, Kangol and other popular sporting-clothes brands, over its future, Eastern's lawyers said in its bankruptcy filing Sunday.
But store chains have been losing sales to smartphone-based and direct retailers. Sports Authority shut down last year. Cabela's has agreed to be purchased by Bass Pro Shops. Vestis filed for bankruptcy last Spring and shut Sports Chalet, and Versa took back Eastern and Bob's at that time.
Besides SportsDirect, whose financial exposure wasn't listed, Eastern's unsecured debts include $768,000 to VF Outdoor, $646,000 to Google Inc., $635,000 to Carhart, and $582,000 to Under Armour Inc., among others.