Athletic gear and apparel retailers Eastern Mountain Sports and Bob’s Stores have jointly filed for Chapter 11 bankruptcy, citing a “liquidity crisis”.
Owned by GoDigital Media Group, the chains run about 50 stores and employ about 771 people, Retail Dive reported, quoting court filings.
The company is owing nearly $30 million to PNC Bank and another $27 million in unpaid rent and other operating debts, CEO Dave Barton told the bankruptcy court. PNC declared a default under their loan agreement in March and stopped funding their operations earlier this month.
Barton said the company needs funds immediately to make payroll as it is has $935,000 of wage obligations.
Eastern Mountain Sports and Bob’s Stores generated $131.9 million in net revenue last year. UK-based Sports Direct, now known as Frasers Group, bought the chains in 2017 and sold them to GoDigital in 2022.
According to Westfair Business Journal, the chain previously announced plans to shutter 10 locations across the Northeast and lay off about 150 employees.
