A New England outdoor clothing and equipment retailer has been saved by a UK chain store that sells similar items.
Eastern Mountain Sports (EMS) filed for bankruptcy along with its sister chain Bob’s Stores after struggling to compete with larger rivals like Dick’s.
While Bob’s, which sold sports and casual apparel in six states, closed in July after shuttering all stores, bosses looked for a buyer for EMS.
This week, Mountain Warehouse, the UK’s largest outdoor gear company, struck a $10 million deal to buy the brand, website and seven profitable stores.
The deal saves more than 100 jobs at EMS, which filed for Chapter 11 protection on June 18.
Eastern Mountain Sports (EMS) filed for bankruptcy but was rescued by British retailer Mountain Warehouse
Together, Bob and EMS owed PNC Bank $30 million, plus another $27 million in unpaid rent and other debts.
In stark contrast, Mountain Warehouse last month reported its highest annual sales in its 27-year history, at $510 million.
The group, which employs more than 3,700 people, also posted pre-tax profits of $34.6 million and announced the opening of 20 new stores this year.
Bob’s had its last day of operation on July 14. The 40-year-old chain, which operated in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island, was gone forever.
But EMS, which began in the United States in 1967 when two friends out fishing decided that camping equipment “shouldn’t cost a fortune,” has a new lease on life.
The first store opened in Wellesley, Massachusetts. It grew dramatically over the years by partnering with leading outdoor brands such as The North Face, Smartwool and Oboz, and by developing its own range of products.
EMS has changed ownership several times recently and ran into difficulties after GoDigital Media acquired the business from Frasers in May 2022.
That transaction was largely financed with debt, which put pressure on its cash flow and forced management to file for Chapter 11 restructuring.
Mountain Warehouse launched in the UK with a single store in 1997 and has grown to over 370 stores across nine countries.
Executives say the purchase of EMS will allow them to increase the number of stores in the United States, where they already have 50. At the same time, they plan to bring the EMS brand to more territories, including Canada and Europe.
Mark Neale, founder and CEO of Mountain Warehouse, says the two companies share values and the same commitment to helping everyone enjoy the outdoors.
“We plan to retain the iconic EMS brand, which has great heritage and DNA, and resonates with a large number of long-standing customers,” Neale said.
‘We will also continue to work with the world’s best-known and highest-quality outdoor brands to stabilise and then grow the business.’
“We are convinced that there is a great business here, with great pedigree and passionate people who can help us understand the market even better and create a bright future.”
Traditional retailers are generally struggling, but those selling sporting goods have been hit the hardest.
Families hit hardest by inflation have opted to spend on essential food and clothing, rather than non-essential items such as sporting goods. Sporting goods retailers had received a boost during the pandemic as people tried to stay fit.
Bob’s and Eastern Mountain aren’t the only ones facing financial trouble in 2024. Retailers, already reeling from the pandemic, have faced higher business costs, particularly labor costs.
Bob’s Stores has closed all of its locations. This is a previous closing at 499 Sunrise Highway in Patchogue, New York in 2019
Eastern Mountain Sports sells outdoor apparel
There were almost 2,600 store closures in the first four months of 2024If this trend continues, almost 8,000 people will have been lost by the end of the year.
In recent months, Walmart has closed three more underperforming stores. Best Buy closed ten. in March.
Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 of its stores in California, Texas, Arizona and Nevada.
The 1,000 closures of Family Dollar and its sister company Dollar Tree will occur in the next three years.
Express, a mall staple, filed for bankruptcy in April and said it would close 95 Express locations along with all of its UpWest stores.
In early May, Rue21, the teen fashion chain that is a fixture in malls across the United States, also said it will close all 543 of its U.S. stores after going bankrupt.
Badcock Home Furniture & More said in late July that it would close its 380 stores across the South after filing for bankruptcy earlier this year.
Last week, news broke that Big Lots is closing 315 stores in several states as its financial problems worsen.
And this week, it was reported that Macy’s has 55 stores planned to close this year.
