Finish Line'S 65 Stores Are Getting Worse And Worse.

Sporting goods chain stores are becoming increasingly depressed, especially in the US.

Finish Line group, one of the three sports shoes giant in the US, recently announced that it would sell its no longer profitable sports chain retail brand JackRabbit to private investment firm CriticalPoint in Losangeles at a price of 0 dollars.

The deal, which just completed last week, marked a new development in the turbulent development of the sporting goods industry at the physical retail outlet.

In the past year, many sporting goods chain stores have been declared bankrupt and liquidation. The most famous example is Sports Authority, a retail chain store with 463 stores in the United States.

A similar situation is common.

Chain stores.

According to reports, Foot Locker executives also said that the recent order volume is declining in the two figure.

According to the official press release, the company has sold all the leased interests and liabilities of JackRabbit's 65 stores, including all the intellectual property rights around the JackRabbit brand, to the investment company. The original JackRabbit employees will also be employed by the latter subsidiary company.

Although the number of books on the deal is somewhat alarming, Finish Line can get rid of the rental contracts of 65 stores and its monthly high expenses.

Finish Line has bought all these stores and invested nearly 4000 dollars in the past six years. In the past six years, the company has always wanted to become a specialized running shoe.

To the sports giant of the market for the old Mom and Dad, but with the impact of the "sports and leisure" trend in the sports market, the demand for pure performance oriented products is sluggish, and the promotion of the sports brands such as Nike and Adidas in the direct stores also makes the dealers feel pressure.

JackRabbit stores in New York, Washington and other big cities are just the first to bear the brunt. These areas are the fastest places for self flagship stores.

And JackRabbit's many organized store management also makes shops lose their individuality and connect with local communities.

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MC Sports, a sporting goods distributor in Michigan, declared bankruptcy. The veteran distributor started from Grand Rapids in 1946, and expanded rapidly through the two acquisition of competitors in the late 80s. It had 68 retail outlets in seven states before bankruptcy.

But due to the failure of settlement out of court, MC Sports had to liquidate all the stores.

MC Sports debt is estimated at 50 million -1 billion, the main creditors include Nike, Under Armour and Columbia sporting goods company, the debt amount is millions of dollars.

There are no real estate resources under the name of MC Sports, which costs US $1 million 200 thousand a month at the store rents.

Of the $78 million assets it currently owns, $62 million is inventory.

This scene looks familiar. In March last year, Sports Authority announced its closure. The 2014 top five sports chain tycoons in the United States were also overwhelmed by the backlog of inventory and supplier debt and had to close or pfer 140 of the 464 stores. The news was shocked by the news.

Although the situation is not an order of magnitude, the trend of the situation looks different. Young people do not want to enter these sports shops which are large and old, and are neither fashionable nor fashionable.

And constantly introducing low price discounts, trying to clear inventory cash, will only label the brand cheap, and eventually the outdated products accumulate more vicious circle.

Lee Peterson, executive vice president of WD Partner, a retail research firm, believes that the failure of branding led to Sports Authority losing its core strength in the market competition with WAL-MART, Taghit and Dick 's.

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