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MC Sports to start layoffs as soon as March 31 as it pursues bankruptcy, liquidation

BY MiBiz Staff Tuesday, February 28, 2017 07:52pm

KENTWOOD — The parent company of MC Sports says it plans to wind down operations at its corporate headquarters and distribution center starting the end of March.

In a Worker Adjustment and Retraining Notification (WARN) Act filing with the state, Michigan Sporting Goods Distributors Inc. indicated it expected permanent layoffs of 61 employees at its operations at 3070 Shaffer SE in Kentwood to take place starting between March 31 and April 13.

The sporting goods retailer filed for Chapter 11 bankruptcy on Feb. 14 after it tried unsuccessfully to strike a deal with trade creditors, vendors and landlords to restructure the company’s balance sheet, as MiBiz previously reported.

MC Sports said it planned to liquidate all 68 of its stores spanning a seven-state footprint in the Midwest.

The company said it incurred losses of $5.4 million before taxes on sales of $174.6 million in 2016, according to filings in the U.S. Bankruptcy Court for the Western District of Michigan.

MC Sports does not own any real estate. The company said it had $78 million in assets, including inventory valued at $62 million, and between $50 million and $100 million in liabilities, according to court filings.

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