Citing unseasonably warm weather and heightened competition, Princeton
Ski Shop Inc. filed for bankruptcy in the U.S. Bankruptcy Court for the
District of New Jersey in Newark.
The company, based in Clifton, NJ, operates four stores in New York City ( 22nd St.), Elmsford, NY, Roslyn, NY, and Clifton, NJ.
According to court papers, the poor winter season in the northeast had
a “terrible lingering effect” on Princeton's liquidity, leaving it
overstocked with inventory and with insufficient cash by early 2007.
“Holiday skiing in the Northeast was as limited as it has ever been,”
court papers said. Sales were $17.8 million in its fiscal year ended
Feb. 2007.
Vendors had required a special agreement to ensure that Princeton would
pay down its trade debt, but Princeton eventually missed a payment on
Oct. 15, according to court papers.
“The shortfall in working capital, lack of availability under its
senior credit line with [Citibank NA] and restrictive continuing trade
credit limitations have forced Princeton to operate below market
potential,” court papers said.
The company also blamed seen increased competition from Dick's Sporting Goods, The Sports Authority, Macy's and internet sites.
Princeton Ski said Chapter 11 bankruptcy protection will enable it to
stave off creditors and improve its ability to buy goods for the
upcoming winter season.
Citibank was owed $1.88 million in the bankruptcy. Trade creditors
include Burton, owed $1.3 billion; Head Tyrolia, $755,894, The North
Face/VF Outdoor, $486,063, Spyder, $302,803, Ski & Sports
Recreation Co./Marker, $262,399, RH LLC, $253,460, K2 Corp, $223,463,
Rossignol,$192,418, Sessions,175,028, Helly Hansen, $166,434, Fischer
Skis, $160,104, Coalison USA, $126,069, Dalbello, $121,120, Smith
Sport Optics, $101,609, Oakley, $98,101, Salomon N.A., $98,018, Bogner,
$84,841, Atomic Ski, $79,862 and Ferra Intl., $79,119.
