Bob’s Stores to Close; Eastern Mountain Sports’ Future Unclear

The third go-around in Chapter 11, the so-called Chapter 33 , is never a good thing.

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Hilco Merchant Resources and Gordon Brothers said on Monday they are managing going-out-of-business (GOB) sales across all 21 Bob’s Stores locations. The future of retail sibling Eastern Mountain Sports remains unclear.

Mountain Sports LLC filed a Chapter 11 petition in a Delaware bankruptcy court on June 18. Versa Capital Management acquired Eastern Mountain Sports (EMS) in 2012, and placed the operation in its Vestis Retail Group, which included Bob’s Stores and Sport Chalet.

Vestis filed its Chapter 11 petition for bankruptcy court protection in 2016. Sport Chalet stores closed as part of the bankruptcy restructuring which saw Versa acquire Bob’s and EMS under the new parent entity, Eastern Outfitters Inc.

But one year later, Eastern Outfitters filed for Chapter 11 for the second time . The two banners were acquired by Mike Fraser’s Sports Direct International Plc, but were later sold to GoDigitalMedia Group in 2022.

The two liquidation firms said on Monday in a statement that Bob’s Stores was liquidating because it was “unable to secure the finances needed to maintain operations.” GOB sales began on Friday.

“We regret that our financial position necessitated the liquidation of Bob’s Stores. Bob’s has been a stalwart of our local communities for nearly 70 years, and we know our customers remember us as having been there for major moments in their lives,” Bob’s Stores’ president Dave Barton said. “We remain grateful to our vendors, suppliers, customers and employees for all of their support over the years.” Barton is also CEO of Mountain Sports LLC.

According to a bankruptcy court document, Barton said that EMS markets to the adventurer looking for reliable and functional outerwear and gear at a value price. In contrast, Bob’s targets moderate-income customers with a selection of footwear, workwear, teamwear and activewear.

The fate of EMS—which operates over two dozen locations—is uncertain.

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The Chapter 11 petition listed estimated assets and debts each at between $10 million to $50 million. Among the vendors holding the top five unsecured claims are Yell Steel Enterprise Inc., import services, $472,335.00; Smartwool Corp, a VF Outdoors Inc. firm at $455,290.00; Oboz Footwear LLC, $431,146.30; Marmot Mountain Intl’l, $353,647.76, and North Face, VF Outdoors Inc., $322,581.52.

Other unsecured fashion creditors include: Wolverine Worldwide Inc., $158,869.84; Amer Sports Winter & Outdoor Co., $195,562.77; On Inc., $125,695.71; Vuori Inc., $118,187.78; Prana Inc., $111,138.75, and Altra Inc., VF Outdoor Inc., $108,393.42. Unsecured debt totaled an estimated $26.7 million on the Chapter 11 petition date.

The company is looking to sell assets as part of its bankruptcy case. The company headquarters in Meridien, Conn., which includes a distribution center, is being vacated. Barton said in the court document that operations can be conducted remotely via the firm’s larger stores. At the time of the petition, the company employed 771 full- and part-time employees, or about 290 full-timers and 481 part-timers. For the year ended Dec. 31, 2023, net revenues generated totaled nearly $131.9 million.

PNC Bank, N.A. is the lender who is owed about $29.4 million comprised of $24.9 million under a revolver and $4.5 million under a “First In, Last Out” loan. Barton said in the court filing that PNC declared a default under the loan agreement in March, and that discussions to work out a reorganization plan failed to resolve the matter. PNC stopped funding the company on June 12, Barton said.

Over the years, some sports retailers have faded into the sunset, such as Sport Chalet, MC Sports, and Sports Authority. Modell’s Sporting Goods was acquired by private equity firm Retail Ecommerce Ventures after its bankruptcy filing, and is now an online operation.

The EMS banners have faced competition from bigger brick-and-mortar operators that include Dick’s Sporting Goods and REI, as well as Academy Sports + Outdoors.

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