Athletic gear retailer City Sports is set to close all 26 of its stores and liquidate the assets, after failing to find a buyer willing to keep the stores open.
City Sports, which initially filed for Chapter 11 bankruptcy protection and closed eight stores in October, sold off its assets to Hilcom Merchant Resources LLC and Gordon Brothers Retail Partners in an auction. The parties began holding going-out-of-business sales at the remaining stores Nov. 6, according to The Boston Globe.
The retailer’s CEO Marty Hanaka attributed high rents and poor revenues at some suburban stores for the company’s subpar financial performance. In October, City Sports claimed $38.6 million in assets and $39.6 million in liabilities.
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City Sports also sold its intellectual property, including the City Sports brand name, for $400,000 to Soccer Post, a soccer-gear retailer with stores in 16 states. Blake Sonnek-Schmelz, owner of Soccer Post, said he plans to launch a retail operation under the City Sports name next year.
