Grand Rapids-based MC Sports - which operates a Traverse City location at 3450 W South Airport Road next to the Grand Traverse Mall - filed for Chapter 11 bankruptcy Tuesday.
"After a valiant and concerted effort by MC Sports’ associates, vendors, landlords, and outside professionals to restructure the Company’s balance sheet and operating performance, the Company was unable to reach an agreement on a viable out of court proposal. The only alternative to address our immediate liquidity issues is to commence liquidation sales at all stores, while concurrently expediting our pursuit of alternative financing and going-concern sale options under the protections of Chapter 11," MC Sports President and CEO Bruce Ullery said in a statement. “To lead our exploration of alternative options, the company recently retained the independent advisory firm, Stout Risius Ross Advisors, LLC.”
The company cited factors including increased competition, increasing direct-to-consumer sales from key vendors, long-term leases "no longer in line with market conditions," and "the blurring of distribution channels by key athletic and outdoor brands" as factors in the decision to file for bankruptcy. While MC Sports' statement referenced immediate liquidation sales at all of its 68 stores across seven Midwest states, it did not specify if or when it will begin closing stores.