Forzani Group Ltd. announced plans to shut 37 outlets of the just-acquired Athletes World chain – about one-quarter of the locations. Speaking Tuesday during a conference call, Forzani chief operating officer Bill Gregson said money-losing stores will be closed once Athletes World finishes restructuring and gets out of court-ordered bankruptcy protection.
According to the Canadian Press, Gregson said 100 stores will be kept open, although some of them will need better lease agreements with their landlords.
Forzani said its deal for Athletes World is valued at $21.5 million. Forzani is paying $1.5 million for the shares of the chain and will assume $20 million in debt.
Athletes World is currently restructuring under court supervision and chief executive Bob Sartor said he expects the chain to achieve “quite decent profitability” once its taken over.
Athletes World is part of the privately-held Bata shoe empire, and the chain generates $186 million in annual sales. Athletes World owed creditors more than $150 million, including about $115 million to Bata.
Forzani operates more than 400 stores under a variety of corporate banners, including Sport Chek, Coast Mountain Sports, Sport Mart, National Sports and Hockey Experts.
