Northwest retailer calls it quits
Before it was Joe's.
Joe’s Sporting Goods, formerly known as GI Joe’s, is calling it quits. Last month in announced it was filing for bankruptcy, but it would reorganize and stay in business.
However, liquidation sales begin today as the Wilsonville, Ore., retailer prepares to shut its doors permanently.
Ripple effect
Joe’s currently operates 31 stores scattered across the Pacific Northwest. However, this folding sporting goods store is not the only company that will be affected by its closure.
Clothing companies like Columbia could take a huge hit since Joe’s is their largest retailer in the region, reports a Washington news outlet.
Managers at Joe’s Sporting Goods also said some of their smaller fishing vendors could lose all of their business. Already, when Joe’s pulled advertising from the Tri-City Herald, the newspaper had to lay people off.
Unemployment tally
Spouses of Joe’s Sporting Goods might find themselves signing up for payday loans in the near future. The store closing means 4,000 people will lose their jobs, including those at outside companies. Joe’s itself has about 1,600 employees.
Oregon already has one of the highest unemployment rates in the country, at 10.8 percent. Washington, where 15 Joe’s stores are located, has an unemployment rate of 8.4 percent.
How did this happen?
Joe’s Sporting Goods’ original plan was to sell the store to a new owner who would keep it operating. However, Boston liquidator Gordon Brothers Group offered to buy the store’s merchandise for more than any potential owner offered for the store.
Gordon Brothers bought Joe’s Sporting Goods’ merchandise, valued at $128.5 million, for $61 million. Going out of business sales begin today, and they will continue until all of the merchandise is gone.
It’s too bad they didn’t stick it out. That was a good place to purchase camping supplies.
The company was bought by a holding company. They mismanaged it at very little or no expense to themselves while so many will be hurt.
It can be scary. Well, if you are a freelance writer, you don’t have to worry about being downsized because of the economy. LOL. But I believe that now is the best time for individuals to try starting their own businesses.
Until the next post, much love, peace, and medicated hair grease.
- Thierry
It is a tad bit scary. It’s good to know that at least freelance writers can make some decent money online without being downsized…
Until the next post, much love, peace, and medicated hair grease.
- Thierry
It truly is a misfortunate event. Everyone is feeling the economic impact in many different levels.
Oh, boy. This is not good. The retail sector was hit really hard, and it’s probably going to keep getting shock waves like this for some time, until things turn around. I hope these people can find new jobs in the very near future.