This Iconic Sporting Goods Company Is Closing Stores Nationwide
Columbia Sportswear is struggling in the current economic downtown, and stores are shutting down.
The latest victim of the current abysmal retail climate is one of America's longest-standing sporting goods companies. This week saw the announcement that Columbia Sportswear will be closing multiple locations nationwide. The company, which has been in business for 82 years, suffered low earnings recently, forcing the closures. Read on for more, and for other sad news about a mainstay of your childhood, check out This Beloved Restaurant Chain Just Filed for Bankruptcy.
Columbia's announcement follows underwhelming third quarter earnings that showed that the company's revenues had dropped by 23 percent, falling more than $65 million short of its $767 million forecast. Tim Boyle, president and chief executive officer of Columbia, attributed the drop in earnings to a dramatic fall in numbers of in-person shoppers with the ongoing restrictions around COVID-19. "While September was our strongest month of the quarter in our U.S. direct-to-consumer business, we have not seen a sustained improvement in brick-and-mortar store traffic to date," Boyle said in a statement. "We anticipated traffic in these markets to remain depressed until tourism resumes."
"We continue to evaluate portfolio and anticipate closing additional underperforming stores," he added. "To enhance store profitability, we're focused on improving store labor efficiency, and lease negotiations are ongoing." There is no news yet which stores will close and how many.
Columbia announced in April that Boyle had reduced his salary to $10,000 until January 2021 "to reflect leadership's commitment to focus available funds on business needs and employees."
Based in Portland, Oregon, Columbia Sportswear has always focused on outdoor apparel, footwear, and accessories that "reflect our Pacific Northwest heritage and indomitable spirit." Founder Gert Boyle was the daughter of Germans who had fled the Nazi regime in 1937, and originally founded the Columbia Hat Company. When Gert took it over in 1970, it became Columbia Sportswear and expanded into a full range of outdoor gear. In 1986, the famous "Bugaboo" parka was released, a benchmark in alpine skiwear; 1996 saw their Performance Fishing Gear range introduced for anglers; and in 2016, they created the innovative Outdry Extreme Eco range, with jackets made from recycled plastic bottles and dye-free fabrics for minimal environmental impact.
Already, Columbia Sportswear had closed eight store locations across the U.S. and shut down its European stores "until further notice" back in March, with these new permanent closures of other stores to follow. Read on for more stores that are shutting down, and for the latest news from the retail world, check out why These 2 Major Mall Chains Just Filed For Bankruptcy.
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