Midwest sporting goods retailer MC Sports files for bankruptcy – USA TODAY
The sports retail industry’s crisis claimed another victim Tuesday with the bankruptcy filing of Midwest chain MC Sports.
The retailer, known legally as Michigan Sporting Goods Distributors, said it plans to immediately begin liquidation sales at all of its 68 stores.
The company left open the possibility that it could remain open in some form through a “going-concern sale,” which would require an outside entity to strike a deal to prop up the brand.
The Grand Rapids, Mich.-based company, founded in 1946, employs more than 1,300 workers. The chain reported a net loss of $5.4 million on sales of $174.6 million in its most recent fiscal year, according to a court filing.
MC Sports CEO Bruce Ullery, who owns 86% of the company, said in a court filing that “the rapid migration of sales from traditional brick-and-mortar retailers to online resellers,” competing distributors, specialty retailers and “changing consumer preferences” contributed to the company’s demise.
He said he had determined that a restructuring was not feasible, particularly after a reinvestment and remodeling project failed to generate adequate results.
MC Sports joins the growing list of sports retailers crushed by the Internet’s rise as a source of specialized sporting goods.
In 2016, big-box chain Sports Authority liquidated, while the Golfsmith chain also filed for bankruptcy protection.
Earlier this month, Eastern Outfitters, which owns discount chain Bob’s Stores and outdoor retailer Eastern Mountain Sports, also filed for Chapter 11 bankruptcy protection.
MC Sports has more than $14 million in trade debt, according to its court filings. It owes about $3.8 million to Nike and $2.4 million to Under Armour.
The company also has almost $475,000 in debt for media and marketing services, court filings show.
MC Sports has locations in Illinois, Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin.
Contributing: Dillon Davis of the Battle Creek Enquirer
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.