MC Sports Files for Chapter 11 Bankruptcy
By Joe Bachman
According to a press release, MC Sports will file for Chapter 11 bankruptcy.
The move comes as an ongoing process to restructure the company, as they have initiated voluntary reorganization proceedings under Chapter 11 of the U.S. Code in Grand Rapids, Mich. where the company’s headquarters are based.
As a result, MC Sports will immediately liquidate all of its 68 stores, including the Wisconsin Rapids location as of Feb. 14.
“After a valiant and concerted effort by MC Sports’ associates, vendors, landlords, and outside
professionals to restructure the company’s balance sheet and operating performance, the company was unable to reach an agreement on a viable out of court proposal,” said MC Sports President and CEO Bruce Ullery. “The only alternative to address our immediate liquidity issues is to commence liquidation sales at all stores, while concurrently expediting our pursuit of alternative financing and going-concern sale options under the protections of Chapter 11.”
“To lead our exploration of alternative options, the company recently retained the independent advisory firm, Stout Risius Ross Advisors, LLC.”
The press release cites increased competition among the sporting goods industry, increased hurdles of blurred distribution channels by outdoor and athletic brands, and the growth of ecommerce and disruption of market growth, among others. The bankruptcy will allow MC Sports to address a number of costs, including long term leases no longer in line with marketing conditions, and the ability to face trade debt.
Founded in 1946 in Grand Rapids, Mich., MC Sports has 68 locations throughout the Midwest, including Illinois, Indiana, Iowa, Michigan, Missouri, Ohio, and Wisconsin.