Amid increased competitive pressure facing the sector.
Eastern Outfitters, the parent of discount chain Bob’s Stores and outdoor retailer Eastern Mountain Sports, filed for bankruptcy protection on Sunday, the latest U.S. retailer to do so amid increased competitive pressure facing the sector.
British sportswear retailer Sports Direct International has engaged in extensive talks with Eastern Outfitters to become a stalking-horse bidder in a bankruptcy auction, the Chapter 11 filing showed.
Sports Direct could not be immediately reached for comment outside regular business hours.
Eastern Outfitters listed assets and liabilities in the range of $100 million to $500 million, according to court documents filed in the U.S. Bankruptcy Court for the District of Delaware.
Eastern Outfitters is owned by private equity firm Versa Capital Management, which acquired Bob’s and Eastern Mountain Sports through the bankruptcy last year of Vestis Retail Group, the previous owner of the store chains.
Versa said at the time that Eastern Outfitters had more than $400 million in annual revenue.
The two retailers and Sports Chalet were indirectly owned by Versa when it filed for Chapter 11 in April. Versa bought the chains back during the course of the bankruptcy.
Another Versa investment, Wet Seal, plans to close all 171 stores and lay off 3,000, the Wall Street Journal reported last month.