With state and local governments easing shelter-in-place restrictions, bankrupt Modell’s Sporting Goods has reopened to continue with its going-out-of-business (GOB) sales at 107 locations.
The company filed for Chapter 11 bankruptcy court protection on March 11, and barely began its GOB sales when it shuttered stores once the stay-at-home orders were put in place to help curb the spread of the coronavirus pandemic. Many retailers began closing stores around the March 18 time frame.
Founded in 1889, Modell’s is the oldest family-owned and operated retailer of sporting goods, athletic footwear and active apparel in the U.S. In addition to selling fan gear for all major sports and local teams, major brands sold at the retailer include Adidas, Capelli Sport, Easton, Everlast, Nike, Rawlings, Wilson, Champion, JanSport, Timberland, Skechers and Vans.
The chain operated 137 stores across the Northeast and Mid-Atlantic when it filed its Chapter 11 petition, but currently operates just the 107 stores that are being liquidated after shuttering 30 locations.
In bankruptcy since May, J. C. Penney plans to close 242 stores by the fall. It is currently conducting GOB sales at 154 locations, and has identified another 13 locations that it plans to close. The balance of 75 stores have yet to be publicly disclosed.
Penney’s is under a deadline to strike an agreement with lenders by July 14 regarding a go-forward plan to exit bankruptcy proceedings or risk having to put itself up for sale.
The coronavirus has had a devastating impact on many weaker-performing retailers due to the store shutdowns and lack of cash flow. Estimates call for as many as 25,000 stores closing in the next five years as a result of pandemic-induced pressures.
And just this week, struggling vitamin retail chain GNC filed its Chapter 11 petition for bankruptcy court protection and expects to close as many as 1,200 of its 5,200 stores.