Regional Sporting Goods Chain Forfeits
Joe’s Sports and Outdoors, a 31-store sporting goods chain operating in the Pacific Northwest, starts a
going-out-of-business sale today. Joe’s, which has been in business 57 years, will continue the sale until all inventory is liquidated and then cease all operations.
All Joe’s inventory is being sold at discount prices. Liquidation specialist
Gordon Brothers Group is assisting Joe’s with the going-out-of-business sale.
Joe’s liquidation reflects two recent trends in the retail industry: financial struggles among retailers of sporting goods and apparel and business closures by regional retailers. Finish Line, a specialty athletic footwear retailer, reported
slight decreases in net sales and comparable store sales during its fiscal 2009 (ended Feb. 28, 2009), although margins and operating income rose. Rival athletic footwear retailer Foot Locker
reported net losses and drops in total sales and comparable store sales during fiscal 2008.
In the broader sporting goods retail vertical, Dick’s Sporting Goods reported a
GAAP net loss of $135 million in fiscal 2008, as well as a comparable store sales decrease, although net sales did rise. Big 5 Sporting Goods
posted losses in net income, net sales, same-store sales, and gross profit margins during fiscal 2008, although it did meet previously released earnings guidance.
Although much attention has been paid to bankruptcies and liquidations of large national retail chains such as Circuit City and Tweeter, many smaller regional chains across a variety of verticals have closed their doors or launched liquidation proceedings in the past year. A partial list includes apparel retailers Harold’s and Steve & Barry’s, department store retailer Value City, and luxury retailer Fortunoff.
