MC Sports Files For Chapter 11 Bankruptcy, Liquidation Sales Are Coming
MC Sports announced Tuesday afternoon that they are filing for Chapter 11 bankruptcy.
The announcement Tuesday didn’t mention any store closings, but they are planning to reorganize the company under the Chapter 11 bankruptcy code. The company which is also known as Michigan Sporting Goods Distributors Inc, was founded in Grand Rapids in 1946.
Currently MC Sports operates 68 locations in seven different states including the ski shop at Cannonsburg Ski Area.
As part of the reorganization and to help with cash flow during the process, all 68 locations will start liquidation sales very soon.
According to their statement, more competition and the shift to online shopping along with what the company calls “a number of legacy costs” is the reason for the filing.
"Like many retailers in the sporting goods industry, the company has faced increased competition, the blurring of distribution channels by key athletic and outdoor brands, increasing direct to consumer sales by key vendors, and the market disruption and growth of e-commerce," the company said in a statement Tuesday. "In response to these headwinds, the company has been systematically moving to larger format stores that combine hunting, fishing and outdoor categories with traditional sports gear, footwear, and apparel."
"In addition, it has worked diligently to shed poor performing locations as lease opportunities became available."
source: WZZM
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