by Dugout Dad » Thu Nov 19, 2009 1:16 am
The big winner in the Chicks to Dicks deal was Jim Chick. Great timing in selling his 15 stores in 2007. He was $31 million in the hole with his large store expansion. Dicks comes in and offers to assume the debt plus offers $40 million cash for the chain, a $71 million deal. They were really hard up to get into California and willing to pay anything. During the store transition period the economy went in the tank and by the time the stores re-opened in May 2009, the chain was worth no where close to the selling price. The problem with Dicks is that their buyers are from back east and they basically have a poor understanding of the California market, especially the female market. Sports Chalet is trying to capture some of Chicks market by trying to sell similar lines, I think they are a better sporting goods than Dicks. There was something wrong when a couple weeks before the transition period they put all their Worth and Dudley softballs at 80% off, $15 a doz, I was able to buy the last 8 doz for our team. That meant that Dicks was not going to carry them anymore, btw, you can't find an ASA stamped ball in the store. Yea, I really miss Chick's Sporting Goods Stores

Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy.
Sir Winston Leonard Spencer Churchill (1874-1965)
You can understand capitalism when you realize that Thomas Edison improved the world more than Karl Marx
Me