Children's Clothing Chain Rugged Bear Declares Bankruptcy
Rugged Bear, which operates 32 children's clothing stores, joins fellow retailers Anchor Blue, Orchard Brands and Ultimate Electronics in the bankruptcy courts in 2011. The retailer, with stores in New England, New York and New Jersey, has $10 million to $50 million in debt and assets in the same range, according to court documents.
The company, founded in 1980 by Eastern Mountain Sports co-founder Alan McDonough, was purchased by Boston brokerage firm Detwiler Fenton Group last year. The new owners planned to expand further in the Northeast and then into new regions, and while the chain was able to open eight new stores under the new owners, it faced strong competition both in its physical stores and online, according to published reports.
The Boston Herald quoted a source close to the company who said the restructuring would allow Rugged Bear to close underperforming stores and reorganize around a smaller number of profitable locations.
For related content: Orchard Brands and Ultimate Electronics File for Chapter 11 Protection
The company, founded in 1980 by Eastern Mountain Sports co-founder Alan McDonough, was purchased by Boston brokerage firm Detwiler Fenton Group last year. The new owners planned to expand further in the Northeast and then into new regions, and while the chain was able to open eight new stores under the new owners, it faced strong competition both in its physical stores and online, according to published reports.
The Boston Herald quoted a source close to the company who said the restructuring would allow Rugged Bear to close underperforming stores and reorganize around a smaller number of profitable locations.
For related content: Orchard Brands and Ultimate Electronics File for Chapter 11 Protection