A sporting goods distributor that has several stores in Ohio -- some in Cincinnati -- has announced its recent filing for Chapter 11 bankruptcy. It announced that liquidation sales would immediately commence at all 68 its stores nationwide. This came after the company was unable to reach agreements related to business debt in out-of-court negotiations.
According to a spokesperson for MC Sports, it suffered similar hardships to those reported by others in the same industry, namely increased competition from the e-commerce industry, direct sales and more. The company is moving its focus away from only sports apparel, footwear and other sports gear. Fewer, larger stores will include outdoor sports categories such as fishing, hunting and more.
The company reported having business debt exceeding $14 million of which most is owed to suppliers, but its debt on marketing and media total just under $500,000. It plans to continue closing stores with poor performance as leases run out. The Chapter 11 bankruptcy will give the company the opportunity to explore alternative options for the road ahead.
When business debt becomes overwhelming, Ohio business owners will likely consider the available remedies. The most appropriate step to take is likely a consultation with an experienced bankruptcy attorney who can explain the pros and cons of the various options. After assessing the details of the business problems, a skilled lawyer can provide valuable input while also calling on other available resources for professional advice. Once the business owner has made an informed decision about how to proceed, the attorney can advocate for the client during any legal proceedings that follow.
Source: wzzm13.com, "MC Sports files for bankruptcy, will liquidate assets", Dillon Davis, Feb. 14, 2017