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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 clothing, and outdoor gear retailer Eastern Mountain Sports together have 50 stores across the northeast of America.
In May, the retailers announced plans to lay off 150 staff at their headquarters in Meriden, Connecticut plus shutter ten stores. The HQ is part of a 240,000 square food depot with 50 loading bays.
But that was not enough to balance the books, and on Friday they filed for Chapter 11 bankruptcy. It is now feared more stores will shut.
Until the recent closures, there were 12 Bob's and Eastern Mountain stores in Connecticut, plus more in Maine, Massachusetts, New Hampshire, New Jersey, New York and Vermont.
Bricks-and-mortar retailers are struggling generally but those selling sporting goods have been hit hardest.
Families hit hard by inflation have chosen to cut back on sports goods rather than food or clothing, pushing spending back below pre-Covid levels. Sports retailers received a boost during the pandemic as people attempted to keep fit.
Nationwide chain Dick's Sporting Goods has been gaining share.
Bob's Stores and sister retailer Eastern Mountain Sports have together shut ten stores in June. This is an earlier closure at 499 Sunrise Highway in Patchogue, New York in 2019
The two chains have long histories in Connecticut, though 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 accounted for 27 of the 50 stores before the closures - is named after founder Bob Lapidus, who opened the first store in 1954 in Middletown in Connecticut.
'Bob's and EMS know how to run good, profitable and productive stores that offer great merchandise with great value,' Burt Flickinger III, managing director of retail consulting firm Strategic Resource Group, told CT Insider.
'But they're facing an accelerating retail ice age.'
The closures, which happened in early June, included two Bob's Stores in Connecticut -one in Hamden, and another in Southington.
The company had only returned to the Hamden Mart shopping center in August last year - after shutting first in December 2020.
Meanwhile, the store at RK Queen Plaza in Southington is set to close less than eight months after its opening on October 27, 2023.
Eastern Mountain Stores to shut include those in Albany, New York, Burlington and Hyannis in Massachusetts, Deptford, New Jersey and Freeport in Maine.
Barton explained the job losses in a May 21 letter to state officials.
'We would like to have given you more notice of this action but were unable to do so because the bank has informed us within the last week that it will refuse to fund the employee health insurance premiums, 401k administration, payroll, as well as other critical financial obligations which, if not paid, will likely prevent us from being able to operate the business going forward,' he wrote.
'As of this date, they remain firm on their position despite our continuing best efforts to convince them otherwise.'
Bob's and Eastern Mountain are not alone in having financial problems in 2024. Many smaller chains, already reeling from the pandemic, have faced higher costs of business, particularly labor.
Bob's Stores has opened outlets recently 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 shutting another 27 pharmacies.
Dollar stores have been hit hard too, with 99 Cents Only announcing in April it would shutter all 371 of its locations across California, Texas, Arizona and Nevada.
Similarly, 1,000 Family Dollars and Dollar Trees will permanently shut over the next few years.
And last week it emerged that an Iconic Texas store loved by Drake abruptly shuttered after two decades
Pinto Ranch, a popular Texas retailer carrying stylish cowboy hats and boots, has been frequented 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.