Sports Chalet goes out of business

Vestis Retail Group, parent company of Sport Chalet, has officially filed for bankruptcy. This comes after following news of the business announcing that it would shutter all of its Sports Chalet operating stores. Unfortunately for the equipment and activewear retailer, the long-term struggles made this result somewhat inevitable.

“This is a consolidation that’s been a long time coming,” Camilo Lyon, managing director for equity research at Canaccord Genuity, told KPCC. Sports Chalet, which has been established for over 57 years, was struggling recently with financial issues. Vestis Retail Group’s plan to shut down Sport Chalet is ultimately focused on supporting more successful brands such as Eastern Mountain Sports (EMS) and Bob’s Stores. This comes after Sports Chalet had business problems from the beginning of its acquisition.

Sports Chalet to shutter all of its locations

Originally, Sport Chalet was already 50 million dollars in debt when Vestis bought the company. “When Vestis first acquired EMS and Sport Chalet, each company faced significant operational challenges and was on the verge of liquidation,” Mark Walsh, chief executive officer of Vestis, said in a statement. However, as time has passed, EMS and Bob’s have stabilized and delivered “solid performance[s]” whereas Sport Chalet has not been as fruitful. The sports retailer faced “competitive pressures” and unfortunately was not able to continue onward business-wise.

The company tried to salvage the brand, but was not able to bring in successful profits. So as part of the brand’s transition into closure, Vestis also filed for bankruptcy. “After reviewing a variety of strategic alternatives, we determined that the best path forward is to separate the business and confront the challenges that have been hindering our overall progress." Operating Sports Chalet stores have started closing sales this week and all of its 47 locations currently. Wells Fargo Capital Finance LLC is providing the company with 125 million dollars in bankruptcy financing in order to keep its doors open during court proceedings, according to the Wall Street Journal. The stores have no confirmed closure date at the moment, although sales will end on April 29.