MC Sports files for bankruptcy, will liquidate assets
Grand Rapids-based MC Sports filed for Chapter 11 bankruptcy Tuesday and will immediately begin liquidating all 68 of its stores, 22 of which are in Michigan.
The company, also known as Michigan Sporting Goods Distributors Inc., said in a statement it was "unable to reach an agreement on a viable out of court proposal" to restructure its balance sheet and operating performance. It said the filing will allow MC "to address a number of legacy costs," including long-term leases and trade debt that have "hampered the company's ability to develop a clear path forward."
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 with totals in the hundreds of thousands for others such as Adidas Group, Columbia Sportswear and Wilson Team Sports, among others.
The company also has almost $475,000 in debt for media and marketing services, court filings show.
Read more:
Here's how to get the best deals at Michigan's closing Macy's
Kmart to close 10 Mich. stores, including original one in Garden City
"Like many retailers in the sporting goods industry, the company has faced increased competition, the blurring of distribution channels by key athletic and outdoor brands, increasing direct to consumer sales by key vendors, and the market disruption and growth of e-commerce," the company said in a statement Tuesday. "In response to these headwinds, the company has been systematically moving to larger format stores that combine hunting, fishing and outdoor categories with traditional sports gear, footwear, and apparel.
"In addition, it has worked diligently to shed poor performing locations as lease opportunities became available."
MC Sports said it has retained an independent advisory firm, Stout Risius Ross Advisors, LLC, to lead the company through an exploration of "alternative options." It is unclear if the move signals closures, though liquidation sales are expected to take place at all of the company's stores.
According to a company release, MC Sports operates 68 stores in seven states. In southeast Michigan, MC Sports is in Briarwood Mall in Ann Arbor, Lakeside Mall in Sterling Heights and Town Square Shopping Center in Brighton.
Contact Battle Creek Enquirer income and opportunity reporter Dillon Davis at 269-966-0698 or dwdavis@battlecreekenquirer.com. Follow him on Twitter: @DillonDavis