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The
company, which has liquidated 19 stores in partnership with
financial services firm Tiger Capital Group, said it will start
closure sales at its remaining stores beginning Friday.
Traditional brick-and-mortar retailers in the United States have
been under immense pressure, as consumers increasingly prefer to
shop from online giants such as Amazon.com Inc <AMZN.O> and
Walmart Inc <WMT.N>.
The privately owned Modell's, which calls itself the oldest U.S.
family owned and operated sporting goods retailer, said it will
also continue to explore recapitalization through a potential
sale of some or all its assets.
Chief Executive Officer Mitchell Modell has in recent interviews
said a warmer-than-normal winter hurt sales of cold-weather
merchandise, while the New York Yankees' failure to make the
baseball World Series and the New York Jets and Giants football
teams' losing records hurt jersey sales.
Several sporting goods retailers have gone out of business over
the last five years, including City Sports, Sports Authority,
Sports Chalet and MC Sports.
Modell's, which was founded in 1889 by Morris Modell as a single
store on Cortlandt Street in lower Manhattan, operated over 140
stores across several northeastern and mid-Atlantic U.S. states.
Some stores, including in Manhattan, had already been undergoing
closing sales.
(Reporting by Jonathan Stempel in New York and Praveen
Paramasivam in Bengaluru; Editing by Arun Koyyur)
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