GRAND RAPIDS, Michigan —MC Sports, which has one of its 68 stores in Wilmington, announced this week it has initiated voluntary reorganization proceedings under Chapter 11 bankruptcy.
“After a valiant and concerted effort by MC Sports’ associates, vendors, landlords, and outside professionals to restructure the Company’s balance sheet and operating performance, the Company was unable to reach an agreement on a viable out of court proposal,” stated President and CEO Bruce Ullery in a press release. “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.”
MC Sports operates stores in seven states — Ohio, Illinois, Indiana, Iowa, Michigan, Missouri and Wisconsin.
As to the future of the Wilmington store, the manager declined comment and referred the News Journal to MC Sports’ corporate. A message left with MC Sports’ corporate was not immediately returned.
“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 stated in the release. “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.
“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. The filing will allow the Company to address a number of legacy costs, including long term leases that are no longer in line with current market conditions, and trade debt that has hampered the company’s ability to develop a clear path forward.”