NATIONAL – Sporting goods retailer MC Sports filed Chapter 11 bankruptcy, and a statement released Tuesday says the retailer will begin liquidating its assets, including all 68 of its stores.
The Grand Rapids, Michigan-based chain released a statement on February 14, explaining it has initiated voluntary reorganization proceedings under Chapter 11 of the U.S. Code in Grand Rapids, MI, Court Case No. 17-00612.
According to the release, despite efforts by chain associates, vendors, landlords and outside professionals to restructure the company’s balance sheet and operating performance, MC Sports was unable to reach an agreement on a “viable out of court proposal.”
MC Sports President and CEO Bruce Ullery explains in the statement, “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 statement goes on to say that MC Sports, like many retailers in the sporting goods industry, have been facing increase competition due to the blurring of distribution channels by key athletic and outdoor brands, as well as direct to consumer sales by vendors.
MC Sports had been attempting to solve this issue by moving to larger format stores that combine outdoor categories with traditional sports gear, along with closing poorer performing stores.
Company officials say, despite these actions, “the company believes that the decision to file and the commencement of liquidation sales are necessary to address the company’s immediate liquidity issue.”
They add the filing will allow the company to address a number of legacy costs and trade debt.
As a result of this decision, MC Sports will begin liquidating its assets.
The company, according to its statement, has 68 locations, with five in Illinois. Four of those stores are in the Central Illinois area. They are located in Forsyth, Champaign, Bloomington and East Peoria.
