Pacific Sunwear and Eastern Mountain Sports could be the next retail companies to file for Chapter 11 bankruptcy protection, according to Bloomberg.
Surfwear chain PacSun could be the next retail bankruptcy as the company prepares to file as early as next week. The 613-store chain has failed to post a profit since 2008 and has lost 90 percent of its value in just the past 12 months.
PacSun could get a reprieve – Golden Gate Capital has loaned it $60 million, reported Bloomberg. Golden Gate also owns California Pizza Kitchen, Eddie Bauer and Payless ShoeSource.
Additionally, the sporting goods category could claim another victim. Vestis Retail Group, the parent company of Eastern Mountain Sports, Bob's Stores and Sport Chalet is also preparing a bankruptcy filing, according to a source familiar with the matter. Vestis is a portfolio of outdoor-themed retailers owned by Versa Capital Management.
The bankruptcy follows Sports Authority, which filed in March, and is indicative of a category undergoing massive consolidation. Cabela's is another takeover target with competitor Bass Pro Shops considering a bid.
This leaves Dicks and REI, which are both thriving.
Dick's has been updating stores and personalizing the shopping experience, noted branding expert Denise Lee Yohn in Forbes. And REI hit a home run with shoppers following its Black Friday marketing move. The retailer closed stores, gave employees the day off and urged its members (customers), outdoor enthusiasts, to #OptOutside. The program gained that retailer more than 1 million new members.
- see this and this Bloomberg story
- see this Forbes article
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