Eastern Mountain Sports (EMS) is poised for a potential turnaround as it navigates a challenging landscape marked by three previous bankruptcy filings. The company, along with its sister brand Bob’s Stores—both owned by GoDigitalMedia Group—has entered Chapter 11 for a third time, an event often foreboding for retailers.
While Bob’s Stores is currently in the process of liquidating its operations, EMS is pursuing a different path. Mountain Sports LLC, the entity managing EMS, filed for Chapter 11 protection in a Delaware bankruptcy court on June 18.
In a significant development, U.K.-based outdoor retailer Mountain Warehouse Ltd. has placed a stalking horse bid of at least $5 million to acquire EMS’s intellectual property and other assets. This offer includes a commitment to pay a percentage of the value for inventory across seven store locations, potentially increasing the total acquisition value to $8 million, according to court documents.
However, the future of all seven store locations remains uncertain. The court filings indicate that leases for three of EMS’s key stores are month-to-month, preventing their automatic transfer to Mountain Warehouse. This means the retailer will need to negotiate new lease agreements directly with landlords.
The seven locations identified in the bid are: Hadley, Mass.; Burlington, Vt.; Lake Placid, N.Y.; West Lebanon, N.H.; Saratoga Springs, N.Y.; Portsmouth, N.H.; and North Conway, N.H. The court documents did not clarify which of these stores are under month-to-month lease terms. At the time of the bankruptcy filing, approximately two dozen EMS locations were operational.
To encourage competitive bids, auction procedures are in place. Should Mountain Warehouse be outbid, it will receive a break-up fee of $150,000 and reimbursement for up to $25,000 in expenses.
EMS has a storied history, having been acquired in 2012 by Versa Capital Management, which integrated it into its Vestis Retail Group portfolio. Vestis, which also operated Bob’s Stores and Sport Chalet, filed for Chapter 11 in 2016, resulting in the closure of Sport Chalet stores. Bob’s and EMS were later reacquired under a new entity named Eastern Outfitters.
A year later, Eastern Outfitters itself filed for bankruptcy protection. Sports Direct International Plc, owned by Mike Fraser, subsequently acquired the EMS and Bob’s brands before selling them to GoDigitalMedia Group in 2022.
Despite its turbulent past, EMS remains committed to serving outdoor enthusiasts with reliable, functional gear and outerwear at competitive prices.
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