MC Sports, a retail store selling sporting goods, apparel, firearms and other such items, has declared bankruptcy. The company is using Chapter 11 bankruptcy, and reports indicate that part of the process will include liquidating stores.
The parent company that runs MC Sports is Michigan Sporting Goods Distributors. However, it has spread out over the years to reach seven different states, including Wisconsin. There are 68 total stores. All in all, the closings are a massive change that will be felt in the industry all over the Midwest.
Along with Michigan and Wisconsin, there are stores in Illinois, Indiana, Iowa, Missouri and Ohio.
Company president Bruce Ullery cited a few different reasons for the bankruptcy filing, on top of simply owing more than they can afford to pay. For one thing, he said it was hard for the brick and mortar stores to keep up with the rise of online sellers, as many consumers simply head to the Internet when they want to buy the goods that MC Sports typically handles.
He also did note that consumer preferences had changed, and he said that competing distribution channels had cut too heavily into their business. He mentioned that competing specialty retailers also played a role.
The bankruptcy documents show that the company did make $174.6 million over the most recent year, but it still lost $5.4 million overall. He said they made a valiant effort to find a solution, but there was nothing else that could be done.
Declaring bankruptcy is a huge step for any company, from a small local shop to a massive chain with stores in multiple states. Regardless of the size of the business, owners must know what debt relief options they have.
Source: Mlive, “MC Sports files for bankruptcy, begins liquidation of stores,” Jim Harger, Feb. 14, 2017