The scourge of insolvency is sweeping through the sporting goods sector as online sellers gain the upper hand over yet another corner of retail just recently dominated by big-box chains, specialty stores and mom-and-pop shops.
USA Today reports that yet another general sporting goods retailer, MC Sports, filed for bankruptcy in February with plans to liquidate its 68 stores. The demise of MC Sports, based in Grand Rapids, Michigan, will eliminate 1,300 jobs in seven Midwestern states. It was at least the 10th bankruptcy of a sports retailer with more than $10 million in liabilities in the last 18 months, according to bankruptcy research source Reorg First Day.
Others have included: Sports Authority, the nation’s second largest sports retail chain which liquidated last year and closed more than 400 locations; and golf equipment store Golfsmith, which filed for bankruptcy protection in September, closing two-thirds of its stores and selling the remaining ones.
Some of the biggest losers have been sporting good chains that offer broad assortments, from canoes to croquet sets. Online sellers are undercutting store-based retailers on price and options, and some specialty retailers are luring customers away with upscale items.
Amid the ruin, though, some see opportunity. Dick’s Sporting Goods, the dominant remaining chain, which has a location at the Mall of Louisiana, in Lafayette and in New Orleans, is capitalizing on the fallout.
Dick’s acquired dozens of stores from its bankrupt competitors, including converting 22 Sports Authority locations into its own stores. Dick’s also purchased Sports Authority’s intellectual property, including its website, which now redirects to Dick’s.
USA Today has the full story.
