U.K.-based Mountain Warehouse has emerged as the stalking horse bidder for Eastern Mountain Sports (EMS) with a $5 million bid to acquire its intellectual property. EMS’ parent company, GoDigital Media Group, filed for bankruptcy in June. Read SGB Media‘s coverage here.
According to court documents, the bankruptcy auction ends by August 30, when the deal is scheduled to close. If a higher bid arrives, Mountain Warehouse is entitled to a $150,000 break-up fee.
According to a statement, Mountain Warehouse seeks to continue operating seven stores under the Eastern Mountain Sports name. Mountain Warehouse will also retain the EMS name.
“This prospect with a company that shares our values and commitment to the outdoor community marks an exciting opportunity for Eastern Mountain Sports. EMS will continue to provide our customers with the best outdoor gear and experience while supporting our dedicated employees and local communities,” said Dave Barton, president of EMS, in the statement.
Mountain Warehouse was founded in 1997 by Mark Neale and operates over 350 stores worldwide. It has been operating stores in the U.S. for over ten years, with six stores in New York, Illinois and Michigan. It also operates several stores in Canada.
EMS ended 2023, operating 24 stores in the Northeast along with an e-commerce website.
EMS filed for Chapter 11 jointly with Bob’s Stores in June, with going-out-of-business sales starting in early July.
As part of the Chapter 11 restructuring, Hilco Merchant Resources, in a joint venture with Gordon Brothers, has been retained to manage liquidation sales at select EMS stores.
