Athletes World Ltd., with 138 athletic footwear and clothing stores in
Canada, has filed for bankruptcy. According to court documents filed in
the Ontario Superior Court of Justice, the retailer owes creditors
$152.3 million, including about $115-million to parent Bata Ltd.
Last year, it lost $7.4-million on sales of $186-million, while in 2005
it was $5.6-million in the red on revenue of about $211-million, the
filing said.
According to Toronto's The Globe and Mail, the retailer will be looking for a buyer while under court protection from creditors.
“We've had some problems here in Canada,” Sonja Bata, a director of the company, told The Globe and Mail.
“Sometimes in business you might have to step back and then you step
forward again … I'm always sad if you have dramatic changes. This is
always a terribly sad thing to do.”
Michael Waitzer, president of the chain, told the paper there are
“several potential buyers” for Athletes World. He did not name them,
but sources told The Globe and Mail that they include Forzani Group Ltd. and U.S.-based Foot Locker.
In May, Athletes World had a deal to sell the company to Michael Gold,
the owner of Canadian fashion chains such as Bluenotes and Suzy Shier.
But court papers indicated that after seven months of negotiations, the
agreement unraveled last Monday.
Athletes World at its peak had 210 stores, specializing in athletic
footwear but branching out into trendier clothing for the 14- to
25-year-old crowd. About 45 percent of its sales are apparel.
