River City Sports to close stores, move to former flagship to stay afloat

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This article was published 05/02/2016 (3567 days ago), so information in it may no longer be current.

One of Winnipeg’s best-known sports retailers is going back to its roots in an effort to stay in business.

River City Sports is going to shutter four underperforming stores, move back into the space of its former flagship location and maintain its outlet in the Polo Park area.

“River City hasn’t been doing too well the last few years. They decided to expand, and it didn’t work out. That happens,” said Joel Lazer, senior partner at Lazer Grant LLP, which is the trustee for the struggling retailer.

The company has filed a notice of intention to file a notice of proposal, which will keep its creditors from targeting its assets while it reorganizes.

According to paperwork filed Wednesday, River City owes $6.8 million to more than 80 entities, including suppliers, financial institutions and individuals.

The numbers are skewed by a $4-million debt to the Business Development Bank of Canada, Lazer said.

The company owes $2.8 million when that is removed from the equation.

Zak Rubin, River City’s general manager, declined to comment.

Other significant creditors include Sport Maska ($483, 812), the Royal Bank ($215,000), Nike Canada ($82, 783), Kildonan Place ($27, 917) and the NHL Players Association ($12,000).

The immediate plan is to close its stores in St. Vital and at the Kildonan Place mall as well as two more in Saskatchewan and move back into its longtime home on Henderson Highway. The online division will continue to operate, Lazer said.

Just what path River City takes depends on what happens in the next couple of weeks. Things will be considerably easier, for example, if it unloads a lot of inventory during that time and is flush with cash.

“They’re going to be paying (cash on delivery) for any supplies,” Lazer said.

The Polo Park location bears a “liquidation sale” banner, and while none of the stores will be offering “fire sale” prices, there will be some deals, he said.

It appears the writing has been on the wall for some time for River City. In late 2014, it shuttered its new flagship store in Tuxedo after just 18 months of waiting for spillover customers from the nearby IKEA location to walk in the doors.