Eastern Mountain Sports next retail bankruptcy: report
Reorganization looms as online competition batters stores
Philadelphia-based Versa Capital Management LLC's Connecticut-based Vestis Retail Group, which owns and operates the Eastern Mountain Sports, Bob's Stores and Sport Chalet retail outdoor/sporting goods chains, is preparing to file for bankruptcy reorganization, Bloomberg LP reported, citing an unnamed source, and noting Versa won't comment.
EMS "would follow Sports Authority Inc.'s trip to bankruptcy court" last month, Bloomberg noted. Industry leader Cabela's has also said it faces tough competition as online sales reduce store visits. Apparel retailers also report declining profits. Bankruptcy reorganization doesn't necessarily mean a chain is closing down, or even changing owners; for some companies it is a way to stiff their vendors and other creditors, or turning their debs into partial ownership, while staying in business.
Versa began accumulating sports retailers in 2008 when it bought Bob's from TJX (TJ Maxx, Marshall's). It added Eastern Mountain Sports in 2012 and Sport Chalet in 2014 in hopes of building a national retail network.