Published
Apr 18, 2016
Reading time
2 minutes
Download
Download the article
Print
Text size

Vestis Retail Group files chapter 11 petitions following strategic review

Published
Apr 18, 2016

Vestis Retail Group, LLC, the parent company of Eastern Mountain Sports, Bob's Stores and Sport Chalet, filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware.
 
The filing is part of “a series of steps that will collectively provide a stronger financial foundation for the Company,” the company says in a news statement.
 
Among those steps, Vestis will close all Sport Chalet stores (closing sales began on April 16).
 
Vestis has also proposed the sale of Eastern Mountain Sports and Bob's to funds advised by Versa Capital Management, LLC ("Versa"), which would acquire substantially all of the remaining assets of the Company.

Inside Sport Chalet. - facebook.com/sportchalet

 
Eight Eastern Mountain Sports and one Bob’s location are also currently being shut down as the retail location were deemed not sufficiently profitable.
 
“EMS and Bob's are now delivering solid performance but have been burdened by limited financial flexibility due, in part, to the unique competitive pressures facing Sport Chalet,” says Mark Walsh, Chief Executive Officer of Vestis in a news statement. “After reviewing a variety of strategic alternatives, we determined that the best path forward is to separate the businesses and confront the challenges that have been hindering our overall progress. We are confident EMS and Bob's will be well-positioned to thrive at the conclusion of the process."

Vestis expects to complete the proposed sale in mid-Summer. In the interim, the Company expects to operate its go-forward Eastern Mountain Sports and Bob's stores and eCommerce sites as usual and to continue store closing sales at other locations as planned.

Copyright © 2024 FashionNetwork.com All rights reserved.