Rumored, no more. Their Sac-town store had been mysteriously “closed for inventory” for a few weeks, and the company’s reps unresponsive, which led to a lot of speculation that their recent spat with Burton (and then shortly after a similar situation with Mervin, I believe) while at the same time trying to open a massive new retail space, resulted in a credit crunch. Losing some of the big brands meant that revenue dried up, and was unable to meet the debt-servicing demands.
In the meantime, they seem to be blowing out inventory.
Although it’s possible that they’ll be able to restructure their debt and keep operating under Sierra or a different name, the fact of the matter is that something like 80% of companies which file for Chapter 11 ultimately fail.
The Angry Snowboarder has the details of Sierra’s bankruptcy filing.
