More retail bankruptcies have taken place in the past week, including by industry customer Eastern Outfitters, owner of the Eastern Mountain Sports and Bob’s chains.
UK sporting goods retailer Sports Direct has agreed to be the stalking horse bidder for the company during the bankruptcy process.
Wet Seal also filed bankruptcy protection last week but has a different plan in mind. The company plans to close all of its 142 stores and its ecommerce site and cease operations.
Versa Capital Management owns both Eastern Outfitters and Wet Seal. It is the second bankruptcy filing for both retailers, proving that reorganizing under Chapter 11 doesn’t mean that a business has solved its fundamental problems.
Just ask American Apparel, which also filed for bankruptcy twice and is being dismantled.
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