Mountain Sports LLC operates the Eastern Mountain Sports and Bob's Stores retail chains in the northeastern United States, with approximately 50 stores and 771 employees generating $131.85 million in 2023 net revenue. The company filed for Chapter 11 protection on June 18, 2024 in the U.S. Bankruptcy Court for the District of Delaware after PNC Bank declared default on approximately $29.4 million in debt ($24.9M revolver + $4.5M FILO loan) in March 2024. Debtors operated under court-approved cash collateral budgets with adequate protection liens. The court approved a 363 asset sale to UK retailer Mountain Warehouse Limited for $10 million on August 29, 2024, securing 7 profitable EMS stores and retaining 100+ jobs. A modified combined plan of reorganization and disclosure statement filed January 14, 2026 proposes a liquidating structure with projected general unsecured creditor recovery of 0.8%-2.2% through liquidating trust interests. Confirmation hearing is scheduled for March 12, 2026.
