Outdoor apparel retailer Mountain Warehouse has secured a deal to acquire the main assets of bankrupt Eastern Mountain Sports (EMS).
The UK retailer has agreed to pay 5 million USD for the New England retailer EMS brand, website, and seven profitable stores. In addition, Mountain Warehouse is set to pay another 5 million USD more for other undisclosed assets from EMS. The agreement sees over 100 jobs saved after EMS filed for Chapter 11 protection on June 18. Following the acquisition, Eastern Mountain Sports will continue to operate as a standalone brand within the group, with the EMS buying team led by Kerry Muricchio, remaining based within the United States.
EMS was founded in 1967 in the US when two friends on a fishing trip sought to offer affordable, durable camping gear. The first store opened in Wellesley, Massachusetts, and the brand expanded by partnering with leading outdoor companies like The North Face and Smartwool, while also developing its own products. After several ownership changes, EMS faced financial challenges following its acquisition by GoDigital Media in May 2022, leading to a Chapter 11 restructuring due to cash flow issues.
Noting that the two companies share many values as well as a commitment to helping everyone enjoy the great outdoors, Mark Neale, founder and CEO of Mountain Warehouse said in a statement: "We plan to retain the iconic EMS brand, which has a great heritage and DNA, and resonates with huge numbers of long-standing customers. We will also continue to work with the highest-quality and best-known outdoor brands in the world to stabilize and then grow the business."
"We are convinced that there is a great business here, with a tremendous pedigree, and passionate people who can help us understand the market even better and create a bright future. Founded in the UK in 1997, Mountain Warehouse currently operates 370 stores across nine countries. The company aims to expand its presence in the US and bring the EMS brand to Canada and Europe. Operating in North America for over a decade, the company has over 50 stores generating more than 85.5 million USD annually. The recently acquired EMS stores and website brought in nearly 27 million USD last year.
The acquisition comes less than a month after Mountain Warehouse revealed record revenue of 510 million USD for the 52 weeks to February 25, up 4 percent year-on-year and the highest in the company's 27-year history. Employing more than 3,700 people, Mountain Warehouse also made pre-tax profits of 34.6 million during the same period. Mountain Warehouse opened 20 new stores since the end of the year, including its first locations in Australia, with plans in the pipeline for an additional 30 store openings and relocations in the upcoming year.
The company's online business, which includes the Mountain Warehouse Marketplace with more than 320 third-party brands selling products such as paddleboards and e-bikes, has also grown and accounts for almost a third of revenue, up from just under a quarter before the pandemic.