Sports Direct International, the British parent company of the eponymous sports retail chain and other properties including Karrimor, has agreed in principle with creditors that it will purchase Eastern Outfitters, the American company that owns 86 stores operating as Eastern Mountain Sports (EMS) and Bob's Stores, instead of going through a bankruptcy auction. SDI is seeking permission to close 21 Bob's stores and 27 EMS stores, but it has agreed to guarantee payment of stub rental fees to landlords for the remaining locations and to take over $42 million in secondary debt from Versa, the company that bought Eastern Outfitters in bankruptcy proceedings last year. The North Face and other unsecured creditors, who will get little in the process, will have time until April 12 to file any objections before a final court hearing scheduled on April 19 to finalize the deal. We would like to mention the fact that many years ago SDI was interested in taking over JD Sports Fashion and its Blacks and Millets outdoor stores in the U.K., but lost its bid for control to Pentland Group.
Related articles
-
ArticleNew CFO for Kent Outdoors, secures $100m credit facility, plans sale of bike business
US group Kent Outdoors, which comprises 15 outdoor and action sports brands, including HO/Hyperlite, Connelly, Liquid Force, Onyx, Aquaglide, Barefoot/Fatsac and Bote, has appointed Rob Otto to the company’s leadership team as Chief Financial Officer. Otto joined Kent after successfully completing the sale of RW Designs, a wholesale and direct ...
-
OpinionCorporate social responsibility - could this be a way to reduce staff fluctuation?
There has been a culture change towards employment in my lifetime: no longer are workers expecting jobs for life. The change has already happened but is sparking something greater with those affected. My graduating students realize they need work skills and know that a period of attachment with a brand ...
-
ArticleCourt lifts Swedish sales ban after Hövding’s bankruptcy - but there's a catch
It’s hard to understand what has been happening in Sweden for several months on Hövding’s back. The company, which had developed and sold a very popular airbag collar for cyclists, had to file for bankruptcy shortly before Christmas because the Swedish Consumer Protection Agency had banned the sale of the ...