US-based Vestis Retail Group has filed for bankruptcy protection.
According to the retail firm, this move has been taken to eliminate the financial burden of its Sport Chalet brand and focus more on its other two retail chains, namely Eastern Mountain Sports and Bob’s Stores.
The retail group has commenced closure of all its shops operating under Sport Chalet brand, as well as eight stores under Eastern Mountain and one Bob’s Stores outlet.
Vestis CEO Mark Walsh was quoted by Fortune as saying: "EMS and Bob’s are now delivering solid performance but have been burdened by limited financial flexibility due, in part, to the unique competitive pressures facing Sport Chalet.
"We determined that the best path forward is to separate the businesses and confront the challenges that have been hindering our overall progress."
In the filing, Vestis has indicated that it has around $500m as liabilities and assets worth less than $50,000.
This Chapter 11 bakruptcy protection filing comes only a few weeks after The Sports Authority filed for bankruptcy protection.