Backwoods, An Outdoor Retailer, Filed For Bankruptcy Protection.

This round of bankruptcies in the US sports retail industry seems to have stopped. In addition to the large chain retail businesses such as Sports Authority, City Sports, Vestis retail group, which have been exposed earlier, recently, 10 stores have been exposed again.

Retailer

The court has filed for bankruptcy protection.

Backwoods has 10 stores in Texas, Oklahoma, Kansas and corolla.

According to court documents, the company filed for bankruptcy protection at the local court on 9 November.

Backwoods, founded in 1973, has 150 employees and annual sales of about $18 million.

As for the reasons for bankruptcy, it is no more than a few sports retailers who have gone bankrupt before, and can not keep up with the change of shopping trends and consumer behavior.

The fierce impact of the 40 year old shop finally failed to declare bankruptcy.

"Backwoods, like many other outdoor retailers, has experienced a decline in sales and net profit margins, and the recent cash flow has gone wrong," said Jennifer Mull, the chief executive of the company. Owing to the leasing problem of the previously closed stores, the company's operating costs increased substantially, including debts of about $500 thousand, and unsecured debts of nearly $3 million 700 thousand.

At present, the total debt of Backwoods has exceeded 10 million US dollars.

The judge approved Backwoods's $3 million loan from GemCap in the form of debtor owned asset financing and continued business in the upcoming holiday season.