City Sports Filed for Bankruptcy and Plans to Close Eight Stores
Boston-based City Sports announced Monday that it has filed for chapter 11 bankruptcy and will close eight of its 26 stores.
The 32-year-old sports retailer operates nine stores in the Boston area, but there’s no news yet as to which stores will be shuttered or when they will close. The company opened a new store in Merrifield, Virginia, just last month.
Despite the significant projected store closings, companies that file for chapter 11 bankruptcy typically intend to reorganize in order to stay in business, so it looks unlikely that the chain will close for good. In a statement reported by the Boston Business Journal, City Sports’ CEO Marty Hanaka said the company is adapting its strategy to ensure long-term success:
“We have arranged financing for reorganization and intend to emerge from this process a much healthier company, better positioned for long-term success,” he said in the statement. “Our stores remain stocked with the same high-quality products, and we will continue to honor gift cards and returns on merchandise purchased prior to the filing. Our team is focused on developing a reorganization plan and running the business during this time of transition.”