East Coast staple Modell's Sporting Goods is preparing to shut down.
On Wednesday, the family-owned retail chain announced it had filed for Chapter 11 bankruptcy after years of failing to compete with online stores. According to Bloomberg, Modell's will kick off liquidation sales this Friday, and intends to close all of its locations in the near future.
"While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers," fourth-generation owner Mitchell Modell said in a statement.
News of the filing comes weeks after Modell's attempted to negotiate with stakeholders as well as receive support from its landlords and vendors. The company, which was founded in 1889, has reportedly struggled to stay afloat following disappointing sales during the holiday season. Owner Modell pointed to a number of factors, including poor performances by New York professional sports teams as well as the company's inability to compete with retail giants like Amazon and Walmart.
Bloomberg reports Modell's and its creditors will continue discussions about a recapitalization of the business through asset sales or an equity investment.
Modell's operates more than 150 stores, which are located in New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Massachusetts, New Hampshire, Delaware, Maryland, Virginia, and Washington D.C.
You can read some of the reactions to Modell's bankruptcy and its plans to close down below.
