Orange County Register

Active Ride Shop said Monday it sought Chapter 11 bankruptcy protection and closed two Orange County stores.

Active co-owner Shane Wallace said it closed the stores in Irvine (Alton Parkway) and Mission Viejo.

On Monday, its Web site lists stores in Tustin, Irvine Spectrum Center, Orange, Huntington Beach, Costa Mesa and Brea. Created in 1989, Active is an action-sports clothing  retailer.

Here’s an excerpt from an Active press release issued Monday:

Active Ride Shop today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in Riverside. The company is focusing on executing a comprehensive corporate restructuring plan without interruption to business operations.

As previously announced, the company has closed 8 under-performing retail locations. This week, the company took action to realign its corporate support structure alongside the smaller store base, which will include 21 retail stores as well its e-commerce storefront. Further, as part of its restructuring efforts, the company will continue to evaluate the productivity of all assets, analyze additional cost-cutting initiatives and research strategic alternatives to maximize the value of the business.

John Wallace, chief executive officer and founder of Active Ride Shop, said “The swift and dramatic downturn in the local economy had a major impact on our business in the 3rd and 4th quarters of 2008. In combination with the robust growth and expansion we experienced during the previous 24 months, this perfect storm of economic retraction left us with no other option.” He continued, “The preemptive cost cutting initiatives that we took throughout 2008 were not enough to protect our investments without filing for Chapter 11 reorganization protection.”

More from OC Retail:

• Home furnishings retailer to close up to 80 stores
• Nordstrom recalls products made in China
• Retailer raises doubt about ability to continue to operate
• Sporting goods chain to close 2 stores
• Sears to close O.C. store
• Retailer wants to close at least 400 stores
• Outdoor retailer closes O.C. store
• Retailer may close up to 100 more stores
• Struggling teen retailer puts itself up for sale
• Women’s retailer to close more stores
• Another big store at The Block closes
• Retailer to close 115 stores
• Will movie-rental chain file for bankruptcy?
• 2 stores close at Fashion Island
• $35 movie ticket may be coming to O.C.
• Family may reopen Mervyn’s stores
• Retailer gives opening date for old O.C. Mervyn’s store
• Retailer with 3 O.C. stores seeks bankruptcy protection
• Well-known shoe brand opens outlet store at The Block
• Downtown Disney store owner files for bankruptcy
• New owners of defunct retailer may open stores

For more from OC Retail, see list of links on the right-hand side of this blog.

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