UK-based outdoor retailer Mountain Warehouse has added to its U.S. portfolio after posting the winning bid for Eastern Mountain Sports’ (EMS) remaining assets, which were not sold during the Going Out of Business sale during its parent company’s Chapter 11 Bankruptcy proceedings.
The terms of the deal, which were initially said to be around $5 million, came in at double that amount.
The total purchase price includes $5 million for the EMS brand, website, and seven remaining profitable stores, with an additional $5 million paid for its other assets. Roughly 100 jobs were expected to be saved in the action to keep the business operating.
According to a statement, Mountain Warehouse plans to continue operating seven stores under the Eastern Mountain Sports name and retain the EMS name.
In addition to its UK and U.S. stores, Mountain Warehouse operates stores in Germany, the Netherlands and Australia. The company plans to add 50 locations next year to expand its 350-door footprint.
“This prospect with a company that shares our values and commitment to the outdoor community marks an exciting opportunity for Eastern Mountain Sports. EMS will continue to provide our customers with the best outdoor gear and experience while supporting our dedicated employees and local communities,” stated Dave Barton, president of EMS, after winning the stalking horse bidder position with an initial $5 million planned bid.
Mountain Warehouse was founded in 1997 by Mark Neale and operates over 350 stores worldwide. It has been operating stores in the U.S. for over ten years, with six stores in New York, Illinois and Michigan. It also operates several stores in Canada.
As part of the Chapter 11 restructuring, Hilco Merchant Resources, in a joint venture with Gordon Brothers, was retained to manage liquidation sales at the remaining EMS stores.
Image courtesy Eastern Mountain Sports
