Sporting goods retailers have battled to stay afloat after the Covid-19 pandemic rocked the nation, forcing retailers in most sectors to shut down operations for long periods in 2020.
Aside from closing stores and reducing customer occupancy in stores to promote physical distancing measures, retailers faced supply chain issues that limited their access to equipment and products.
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Other financial issues included higher interest rates and rising inflation that increased retailers’ business costs.
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Regional sporting goods retail icon, Modell’s, which operated 153 stores in the Northeast and Mid-Atlantic states, filed for Chapter 11 protection on March 11, 2020, just as the Covid-19 pandemic was starting.
The pandemic was the last straw for Modell’s as the retail chain shut its doors because of the pandemic on March 13, 2020. When it reopened in late June 2020, it began liquidation sales before ceasing operations permanently.
Mountain Sports, which operated about 50 sporting goods and apparel stores in seven Northeast states under the Eastern Mountain Sports and Bob’s Stores brands, on June 18, 2024, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware to restructure its debt and reorganize its business after defaulting on a loan agreement with PNC Bank.
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Eastern Mountain Sports, or EMS, marketed itself to the “adventurer looking for reliable and functional outerwear and gear at a value price,” CEO David Barton wrote in his declaration. “Bob’s targets moderate-income customers with a selection of footwear, workwear, teamwear and activewear.”
Mountain Warehouse, an outdoor gear and apparel company based in the United Kingdom, emerged as the savior for Mountain Sports as it on Sept. 2, 2024, purchased the bankrupt chain’s key assets, including the long-established brand name, website and the seven profitable stores, for $5 million, along with another $5 million for other assets not mentioned in the statement.
On top of the common financial issues facing most retailers since the Covid pandemic, other business problems, such as product recalls and legal disputes with suppliers and partners can be a financial burden that forces a company to file for bankruptcy protection.
Surf 9 filed for Chapter 11 bankruptcy facing a royalties dispute with Body Glove.
Surf 9
Surf 9 files for bankruptcy in dispute with Body Glove
Sporting goods company Surf 9, which claims to be the third-largest paddle board retailer worldwide, filed for Chapter 11 bankruptcy seeking to reorganize its business as it faces water sports equipment maker Body Glove’s plans to terminate its license to distribute paddle boards and footwear over alleged unpaid royalties, Law360 reported.
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The Bonita Springs, Fla.-based sporting goods retailer listed up to $50 million in assets and liabilities in its petition filed in the U.S. Bankruptcy Court for the Eastern District of New York on Jan. 8.
Surf 9 was launched in 2005 by founder and CEO John Chenciner, who obtained a licensing agreement with sporting goods brand Body Glove in the same year and amassed multiple patents for design and utility for sporting goods and footwear, according to the company’s website.
Top retail bankruptcy filings in 2024
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In addition to Body Glove products, Surf 9 is licensed to sell Nautica, Eddie Bauer, Spyder, and Airwalk brands. The company also owns retailers Denali Outdoors and Havasu Watersports.
Surf 9 recalled Body Glove paddle boards in 2022
Surf 9 in December 2022 recalled 13,300 Body Glove Tandem Inflatable Stand Up Paddle Boards, ULI Inventor Inflatable Paddle Boards, ULI Zettian Inflatable Supyaks, and ULI Lila Inflatable Supyaks from Costco Wholesale Warehouses for a problem related to glue on the inflatable paddle boards separating at the seams, causing the paddle boards to deflate unexpectedly and posing a drowning hazard, according to the U.S. Consumer Product Safety Commission.
The inflatables were manufactured by Jiangxi Aike Outdoor Sports in China.
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