Sports goods chain that operates across seven states sparks fears of closures after filing for bankruptcy

Two sister chains that sell sporting goods have filed for bankruptcy as retailers continue to struggle.

Bob’s Stores, which sells athletic and casual wear, and outdoor gear retailer Eastern Mountain Sports have a combined 50 stores in the Northeast.

In May, the retailers announced plans to lay off 150 employees at their headquarters in Meriden, Connecticut, plus close 10 stores. The headquarters is part of a 240,000-square-foot food depot with 50 loading bays.

But that wasn’t enough to balance the books, and on Friday they filed for Chapter 11 bankruptcy. It is feared that more stores will close.

Until the recent closures, there were 12 Bob’s and Eastern Mountain stores in its home state of Connecticut, plus more in Maine, Massachusetts, New Hampshire, New Jersey, New York and Vermont.

Brick-and-mortar retailers are generally struggling, but sporting goods sellers are being hit the hardest. The national chain Dick’s Sporting Goods is gaining market share.

The two chains have long histories in Connecticut, although they have stores in other states

Dave Barton, CEO of both brands, told the bankruptcy court that the company owes PNC Bank $30 million, plus another $27 million in unpaid rent and other debts.

The two chains have long histories in Connecticut.

Bob’s – which represented 27 of its 50 stores before the closures – takes its name from its founder. Bob Lapidus opened the first store in 1954 in the state’s Middletown.

“Bob’s and EMS know how to run good, profitable and productive stores that offer great merchandise at great value,” Burt Flickinger III, director of retail consulting firm Strategic Resource Group, told me. CT Insider.

“But they’re facing an accelerating retail ice age.”

The closures, which occurred in early June, included two Bob’s Stores in Connecticut – in Hamden and another in Southington.

The business had only returned to the Hamden Mart shopping center in August last year – after first closing in December 2020.

Meanwhile, the store at RK Queen Plaza in Southington will close less than eight months after opening on October 27, 2023.

Eastern Mountain Stores will close, including those in Albany, New York, Burlington, Massachusetts, Deptford, New Jersey, Freeport, Maine and Hyannis, Massachusetts.

Barton explained the job losses in a May 21 letter to state officials.

‘We would have liked to give you more notice of this action, but were unable to do so because the bank informed us this past week that it will refuse to pay employee health insurance premiums, 401k administration, payroll and other financing. critical financial obligations that, if not paid, will likely prevent us from operating the business in the future,” he wrote.

“As of this date, they continue to maintain their position despite our continued efforts to convince them otherwise.”

Bob’s and Eastern Mountain aren’t the only ones facing financial trouble in 2024. Many smaller chains, already reeling from the pandemic, have faced higher operating costs, especially in labor.

Bob’s Stores recently opened outlets but is now closing them

There have been almost 2,600 store closures so far in 2024.

In recent weeks, Walmart has closed three more of its underperforming locations, while Rite Aid is closing another 27 pharmacies.

Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 locations in California, Texas, Arizona and Nevada.

Likewise, 1,000 Family Dollars and Dollar Trees will be permanently closed in the coming years.

And last week it emerged that an iconic store in Texas was loved by Drake closed abruptly after twenty years

Pinto Ranch, a popular Texas retailer that sells stylish cowboy hats and boots, has been visited by rapper Drake and singer-actress Letoya Luckett. It also has locations in Dallas and Houston’s George Bush Airport, both of which are also closed.