Friday, March 6, 2009

Joe's files chapter 11 bankruptcy

From the Oregonian:

Joe's Sports & Outdoor filed for Chapter 11 reorganization Wednesday, seeking to keep its stores and Wilsonville-based headquarters open until it's sold -- possibly within 30 days.
The Oregon retailing icon, bought by the equity firm Gryphon Investors of San Francisco in 2007, has no immediate plans for layoffs and will cover its 1,600 employees' salaries and benefits through a potential sale, said John Mangan, a Joe's spokesman.

The purchase by Gryphon Investors was a leveraged buyout, not surprising that a drop in sales would sink the entire retailer.