In recent years, fashion and sporting goods sales have transitioned increasingly from brick and mortar sales to digital. It is because of that shift that another sporting goods retail chain is closing its doors.
MC Sports, a sporting goods retail chain in the Midwestern United States, has filed bankruptcy and will immediately begin liquidating its stores.
The company, Michigan Sporting Goods Distributers, is based in Grand Rapids, Michigan. It owns 68 stores across the region, and employs over 1300 workers. Founded in 1946, the retail store saw success as a brick and mortar retailer but is now reporting a net loss of $5.4 million on sales of $174.6 million.
Chief Executive Officer Bruce Ullery owns 86% of the company. In a court filing, he stated that “the rapid migration of sales from traditional brick and mortar retailers to online resellers” were largely responsible for the demise of the company. He also cited competition from distributors, specialty stores, and a shift in preferences of consumers.
MC Sports previously attempted to restructure in a reinvestment and remodeling project. However, it did not produce results, and Ullery said that it would not be feasible to attempt this again.
However, the company is not closing doors on the possibility that it could remain open via a “going concern sale”. This would require an outside company to invest through a deal which would sustain the brand indefinitely.
However, any investor would look closely at MC Sports’s current debts, which include $3.8 million to Nike and $2.4 million to Under Armour. MC Sports has also accrued approximately $475,000 in media and marketing debt.
MC Sports is only one of several sporting goods brands to close. In 2016, Sports Authority was purchased by liquidation companies. Golfsmith, Eastern Outfitters and Sport Chalet also met a similar demise with the rise of online retailers.