The drumbeat of potential bankruptcy filings by industry customers continues to unfold as the challenging retail climate takes its toll.
The latest report is that Vestis Retail Group, the parent company of Sport Chalet, Eastern Mountain Sports and Bob’s Stores, could file for bankruptcy as early as next week, according to Bloomberg.
Both Sport Chalet and Eastern Mountain Sports are large industry customers for both snow and surf brands.
Vestis confirmed it was looking at strategic alternatives but declined to comment on bankruptcy speculation, according to Sports One Source.
The Wall Street Journal also reported this week that PacSun, while still in discussions with creditors, is preparing to file a bankruptcy petition by the end of this month. The paper cited anonymous sources close to the discussions.
The potential filings come at a time when many industry brands are struggling to find growth in the North American market, with the core base stable but not growing and many of the larger retailers challenged.
If PacSun and the Sport Chalet parent company file for bankruptcy, industry brands could be out millions of dollars. Several brands have already been stung by the Sports Authority bankruptcy, which is currently winding its way through the courts.
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