Dive Brief:
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Because Bob’s Stores was “unable to secure the finances needed to maintain operations,” the chain plans to close all 21 locations and liquidate all inventory.
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On June 18, Bob’s Stores and Eastern Mountain Sports, both owned by GoDigital Media Group, filed for Chapter 11 bankruptcy protection.
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Neither Eastern Mountain Sports nor GoDigital Media Group immediately returned requests for comment on plans for the EMS banner, which runs about 20 stores.
Dive Insight:
Loyal shoppers at Bob’s, a fixture in New England for several decades, can use any gift cards or merchandise credits they have through July 14. Going-out-of-business sales began last week, with discounts of up to 70%, according to a company press release.
The retailer will be closing all locations, which are found in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island. The assortment includes workwear, footwear, team wear and casual clothing for men, women and children. Some store fixtures, furniture and equipment will also be available during the liquidation, which is being managed by Hilco Merchant Resources in a joint venture with Gordon Brothers.
In a statement, Bob’s Stores President Dave Barton expressed gratitude to the company’s “vendors, suppliers, customers and employees for all of their support over the years."
The company said it made “swift and aggressive changes to the company's structure and operations,” but that Bob's Stores was unable to secure the funds it needed to carry on. Together EMS and Bob’s generated $131.9 million in net revenue last year, per court filings. Earlier this year their bank declared a default under their loan agreement, took control over their cash and receivables, and would only fund certain expenses. On June 12, after discussions broke down, the bank stopped funding their operations.
"We regret that our financial position necessitated the liquidation of Bob's Stores,” Barton said. “Bob's has been a stalwart of our local communities for nearly 70 years, and we know our customers remember us as having been there for major moments in their lives.”
