Eastern Outfitters to close Eastern Mountain, Bob's stores for Sports Direct deal
Eastern Outfitters, just months after filing for bankruptcy, shared plans to close a number of Eastern Mountain Sports and Bob’s Stores. The proposal will be heard at a US Bankruptcy Court in Wilmington, Delaware on April 13.
The Connecticut-based company aims to create a deal with Sports Direct. The UK sporting goods retailer has been interested in acquiring Eastern Outfitters since before the company filed for bankruptcy, and previously gave the company an $85 million loan to repay its debts.
Sports Direct is currently analyzing the performances and profitability of Eastern Outfitters’ 86 stores, in order to decide which stores will be acquired. The UK retailer previously expressed interest in continuing operations for a few stores.
Vestis Retail Group, former parent company of Bob’s and Eastern Mountain Sports, filed for bankruptcy in April 2016 and sold the brands to Versa Capital Management. In February, the brands filed for a second bankruptcy in less than a year.
Eastern Outfitters is an attractive business that reported $400 million in revenue last year. The company has been on Sports Direct’s radar, since the UK retailer failed to acquire Sports Authority in an auction that was eventually won by Dick’s Sporting Goods.
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