Unable to secure a buyer by Oct. 30 in order to maximize liquidation sales during the holiday selling period, athletic gear retailer City Sports Inc. sold its assets to a group known for buying struggling companies. Boston-based City Sports, which filed for bankruptcy in October, plans to hold going-out-of-business sales starting today. A declaration filed by company officials says harsh weather last winter and stiff competition pushed the company into bankruptcy.
Its assets will be sold to Hilco Merchant Resources LLC, a unit of Hilco Global of Northbrook, Illinois, and Gordon Brothers Retail Partners LLC of Boston. The retailer, upon bankruptcy, planned to close eight of its locations and seek a buyer for the remaining 18. Instead, all of 26 stores will be liqudated.
City Sports also sold its intellectual property, including the City Sports name, for $400,000 to Soccer Post, which a soccer-gear retailer with stores in 16 states. According to reports, the owner of Soccer Post plans to launch a retail operation under the City Sports name next year.
