Modell’s Sporting Goods is the latest athletic-based retailer with a future in limbo.
According to a report today from The Wall Street Journal, the New York-based sporting goods chain has hired a restructuring adviser with intentions of fixing the company that has suffered from poor sales and is losing business to big-box and online stores.
The report states Modell’s, which has been in business for 130 years and has more than 150 stores, has retained Berkeley Research Group to explore its next steps, which may include a filing for bankruptcy.
Modell’s is just one of several sporting goods stores — and retailers in general — to feel the pressure of a changing high-stakes athletic landscape.
In recent years, several big names in the sporting goods channel fell. Grand Rapids, Mich.-based MC Sports filed for Chapter 11 protection in 2017; Sports Chalet said it would close its doors in April 2016; The Sports Authority filed for bankruptcy in March 2016; and City Sports filed in October 2015.
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Meanwhile, shares of industry bellwether Dick’s Sporting Goods took a hit on Tuesday, dropping roughly 11 percent to $34.61 at market close. The hit came after the retailer announced it missed expectations for 2018.
For its fiscal fourth quarter ended Feb. 2, DSG reported a revenues decrease of 6.5 percent to $2.49 billion and same-store sales dropping 2.2 percent, with executives suggesting to analysts on a call today that poor sales in the hunt and electronics categories are mostly responsible for the declines.
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