A
bankruptcy court on Thursday approved the liquidation sale of all remaining
merchandise of 57-year-old Joe's Sports & Outdoors. Going-out-of-business
sales will start Friday at the company's 31 remaining stores
and
The
merchandise valued between $120 million and $130 million was purchased for $61
million by Boston-based liquidator, Gordon Brothers Group.
“This
historical event will mark the end of an era,” said
Lonabocker
“Consumers will find great values on all merchandise at every store
location. Those who arrive first will be able to choose from the broadest
selection.”
The
Oregon-based company filed Chapter 11 bankruptcy on March 4, 2009, just two years
after it was acquired by the
private equity fund Gryphon Investors. In its filing, it said if no buyer were
found for the chain in 30 days, it would cease operations. The retailer did not
receive any bids from companies willing to continue operating the company, and
also wasn't able to secure any other partners or financing to restructure its
debts.
When it filed, it listed assets and debt as both between $100 million
and $500 million.
company owed top suppliers such as Columbia Sportswear and Nike nearly $13
million.
In its filing for
bankruptcy protection, a company adviser said Joe's had suffered like other
retailers from “very weak sales” in the recession. It was also hurt
by poor holiday sales caused by “unseasonably dry weather throughout the
pumped up promotional spending to try to boost sales, and its profit margins
shrank, the filing said.
Ed Orkney,
an Army Air Corps pilot, began G.I. Joe's in 1952, selling surplus Army sleeping bags from a tent in
Orkney sold the company to Norm Daniels, who grew it into one of
revenue of $270 million and Daniels outlined an ambitious plan for opening new
large format stores across the region.
Gryphon renamed
the stores “Joe's Sports, Outdoors and More” after
purchasing it in 2007.
