In documents filed in the U.S. Bankruptcy Court in the District of Delaware, the company — which tapped veteran-retail-exec, Marty Hanaka, to be its new CEO back in July — said both its assets and liabilities are estimated to total between $10 million and $50 million.
“We have arranged financing for reorganization and intend to emerge from this process a much healthier company, better positioned for long-term success,” said Marty Hanaka, CEO of City Sports, in a statement to Footwear News.
The company said it plans to close eight out of its 26 retail locations along the East Coast and that timing of the closures and the specific locations has not yet been determined.
The company expects the reorganization process to take one to three months. Meanwhile, City Sports will continue to operate its existing 18 retail stores and online business.
“The company has arranged continued financing that will allow for ordinary business operations to continue uninterrupted during the reorganization process,” City Sports said.
In the court documents, the company lists Nike Inc., Under Armour Inc., Asics America and Patagonia Inc. as its biggest creditors.
The firm said it owes $1.3 million to Nike Inc. and owes just over a million to Under Armour Inc., Asics America, and Patagonia separately.
Other creditors include Adidas, Saucony, Converse and New Balance.
“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,” said Hanaka. “Our team is focused on developing a reorganization plan and running the business during this time of transition.”
Hanaka had come on board at the retail chain to fill the CEO spot vacated by Edward Albertian, who retired in June after three years on the job.