Eastern Mountain Sports lost $1.70 million before taxes on $10.7 million in sales in May, according to financial statements filed in the federal court overseeing the bankruptcy proceedings of its parent company Vestis Retail Group LLC.
EMS, which plans to exit bankruptcy court next month after shedding eight of 68 stores, earned a gross margin of 38.3 percent, according to court records.
Selling, general and administrative costs at the Connecticut-based outdoor specialty retailer reached $5.15 million, or 48 percent of net sales, not including $118,623 in restructuring costs during the month.
EMS ended the month with current assets of $44.6 million, including $40.0 million in inventory, and total liabilities of $114.5 million, including $86.9 million that can be negotiated lower via the bankruptcy process.
Vestis Retail Group LLC has been liquidating the Sports Chalet retail chain and eight EMS stores since filling a petition under Chapter 11 of the U.S. Bankruptcy Code in April. Vestis is on track to exit the process next month with all its Bob’s Stores and 60 of its EMS stores intact.
