Modell's Sporting Goods filed for bankruptcy Wednesday and will begin closing all stores at the end of the week, Bloomberg reported Wednesday. The retail chain filed a Chapter 11 bankruptcy petition in New Jersey, and will begin liquidation sales at its locations on Friday. "While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers," Modell said in a statement, citing Bloomberg. Visit Business Insider's homepage for more stories.
Sporting-goods retailer Modell's is closing all stores and filing for bankruptcy, Bloomberg reported Wednesday. The retail chain, which prides itself on being one of the oldest family-owned US sporting goods retailers, will shutter all locations and begin liquidation sales on Friday and continue online sales, according to the Bloomberg report. Chief Executive Officer Mitchell Modell has said in interviews that recent warmer weather has hurt outerwear sales, as well as citing losing records in professional teams like the New York Yankees and the New York Jets and Giants football teams resulting in lower jersey sales, Reuters reported. "While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers," Modell said in a statement, according to Bloomberg. The sporting goods retailer has partnered with financial services firm Tiger Capital Group to liquidate its remaining stores, which is set to begin at the end of this week. Modell's is the latest in a slew of sporting goods retail chains that have shuttered their doors for good, joining retailers like City Sports, Sports Authority, Sports Chalet, and MC Sports, according to the Reuters report.
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A number of retailers and restaurant companies have filed for bankruptcy in 2020. Not all bankruptcies...A number of retailers and restaurant companies have filed for bankruptcy in 2020. Not all bankruptcies result in outright liquidation. Companies can also use bankruptcy as an opportunity to turn things around financially. Visit Business Insider's homepage for more stories. 2020 has been a busy year for retail bankruptcies. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. This resulted in everything from outright liquidation to financial reshuffling. But either way, the retail business being what it is, it's not unreasonable to expect to see more shuttered stores on the horizon, especially as the coronavirus pandemic disrupts the industry. Here's a list of the retail companies and restaurant chains that have filed for bankruptcy so far in 2020:SEE ALSO: Neiman Marcus, J. Crew, and True Religion are among the first US retailers to file for bankruptcy as the pandemic takes its toll. Here's the full list so far. The entire fleet of Papyrus stores was slated to shut down when the chain's parent company, The Schurman Retail Group, filed for bankruptcy in January. Source: Business Insider After Kroger announced it would divest its stake in Lucky's Market in December, grocery industry observers wondered whether the regional chain might be in jeopardy. The following month, Lucky's filed for Chapter 11 bankruptcy. Source: Business Insider, CNN Organic grocer Earth Fare filed for Chapter 11 bankruptcy on February 4. The chain's 50 natural foods stores were set to shut down, but some locations have been acquired by new owners. Source: Associated Press, Business Insider, Supermarket News Noah's Event Venue, a chain offering spaces for various gatherings, technically filed for bankruptcy in May 2019. However, in February 2020, a federal judge ordered the remaining Noah's locations closed, leaving engaged couples around the country scrambling. Source: WBIR, Fox 23 Home goods retailer Pier 1 filed for Chapter 11 bankruptcy on February 17. In May, the Texas-based company said it would shut down its business after failing to find a buyer. Source: Business Insider, Business Insider Michigan-based chain Art Van Furniture filed for Chapter 11 on March 8. Source: Click on Detroit Send tips to email@example.com. Modell's Sporting Goods filed for Chapter 11 on March 11. The family-owned sporting goods chain will liquidate its remaining stores after failing to find a buyer, Bloomberg reported. Source: Bloomberg FoodFirst Global Restaurants, the parent company of the Brio Italian Mediterranean and Bravo Fresh Italian restaurant chains, filed for Chapter 11 bankruptcy on April 10. The company said that 71 of its 92 restaurants had temporarily closed amid the coronavirus outbreak. Source: Restaurant Business True Religion filed for Chapter 11 bankruptcy protection on April 13. It had previously filed for bankruptcy in 2017 but emerged from proceedings four months later. Source: Bloomberg J. Crew filed for Chapter 11 bankruptcy protection on May 4. The company now plans to convert $1.65 billion of its debt into equity. Source: Business Insider Neiman Marcus filed for Chapter 11 bankruptcy on May 7, citing "inexorable pressure" from the coronavirus pandemic. Source: Business Insider Stage Stores, which owns Goody's, Palais Royal, Bealls, Peebles, and Gordmans, filed for Chapter 11 bankruptcy on May 10, saying that coronavirus-related closures exacerbated a "challenging market environment." The company said it would start winding down operations while seeking a buyer for part or all of its business. Source: Stage Stores Garden Fresh Restaurants, owner of the buffet chains Souplantation and Sweet Tomatoes filed for Chapter 7 bankruptcy on May 14, choosing to close its doors for good. Source: Restaurant Business JCPenney filed for bankruptcy on May 15, saying in court documents that pandemic-related disruptions pushed it over the edge. It will close about 30% of its stores. Source: Business Insider, Business Insider On May 27, off-price retailer Tuesday Morning filed for Chapter 11 bankruptcy and announced plans to close approximately 230 stores. Source: Business Insider The US arm of Le Pain Quotidien filed for Chapter 11 bankruptcy on May 27. It sold all of its 98 locations to Aurify Brands, which reportedly plans to reopen at least 35 restaurants. Source: Nation's Restaurant News