City Sports has filed for Chapter 11 bankruptcy protection in an effort to save the company. It will liquidate at least one-quarter of its stores.
The athletic chain will partner with liquidators Tiger Capital Group to hold going-out-of-business sales at eight stores throughout the Northeast, reported The Wall Street Journal. In total, the retailer has 26 stores. Tiger Capital Group recently helped out with the liquidation of Fresh Produce and Loehmann's after both retailers also filed for Chapter 11.
City Sports is hoping to find a buyer to either continue operating the remaining stores or liquidate them. The retailer has created a hard deadline of October 30. At the end of the month, the stores will be forced to liquidate if not sold, and therefore City Sports has requested the bankruptcy court consider its auction proposal by Oct. 19.
City Sports has struggled to compete with giants in the industry such as Sports Authority and Dick's Sporting Goods, as well as big-box retailers that sell athletic equipment such as Walmart and Target.
In spring, the company hired financial advisers to help reduce costs and store hours were cut, along with the labor force. And over the summer, the company announced Marty Hanaka as its new CEO, replacing Eddie Albertian. Hanaka has 40 years of experience in retail and served on the City Sports' board of directors since 2008.
-See this Wall Street Journal article
City Sports hires retail vet as CEO
Loehmann's Assets, Leases Sold at Auction
Why T.J. Maxx, Marshalls Thrive As Loehmann's Goes Bankrupt
Loehmann's Files for Chapter 11 Bankruptcy
Year-Old Grocery Chain Belle Foods Files For Bankruptcy