Vestis Retail Group LLC, the operator of Eastern Mountain Sports, filed for bankruptcy protection after failing to adjust to changes in U.S. shopping habits, especially among young people, Bloomberg News reported today. Vestis, which also runs the Sport Chalet and Bob’s Stores chains, is owned by Philadelphia-based private equity firm Versa Capital Management. The chapter 11 petition filed today in Wilmington, Del., listed as much as $500 million in liabilities and less than $50,000 of assets. The company said that Vestis BSI Funding II LLC, funds advised by Versa, has agreed to purchase substantially all of its remaining assets. Vestis will seek approval of a court-supervised auction process with the Vestis BSI offer as the opening bid, according to court papers. Vestis will seek approval of up to $125 million in debtor-in-possession financing from its pre-petition lender Wells Fargo Capital Finance LLC to help fund operations while the company restructures.
