Private equity investment firm Versa Capital Management has formed a new holding company. Dubbed Eastern Outfitters, LLC, the company brings together two restructured and recapitalized retail operations: Eastern Mountain Sports (EMS) and Bob’s Stores.
Both retailers will operate as business units of Eastern Outfitters, which earns more than $400 million in annual multi-channel revenue, according to company data. The holding company will be headquartered in Meriden, Conn. and led by CEO Mark Walsh.
The news follows an announcement that Vestis Retail Group (an entity of Versa that operated Bob’s Stores, EMS and Sport Chalet) filed for Chapter 11 bankruptcy in April 2016. Vestis later shuttered all of its Sport Chalet stores in order to focus on the advancement of Bob’s and EMS.
“With an enhanced capital structure and healthy balance sheet, EMS and Bob’s now have the flexibility they need to prosper in the current retail environment, which rewards brands that offer unique products with highly attentive customer service at attractive price points,” said Gregory L. Segall, Chairman and CEO of Versa in a statement.