Sporting goods chain Joe's Sports & Outdoor has filed for Chapter 11 reorganisation so that it can continue to run its stores while a buyer is sought.

The announcement yesterday (5 March) comes just two weeks after the company said it was carrying out a strategic review of its business.

The filing in the US Bankruptcy Court in Delaware includes the possibility of a prompt sale within 30 days.

During the reorganisation process, Joe's says it expects to continue to operate all of its 30 stores and pay salary and benefits to its employees.

To fund its operations during the restructuring, Joe's has obtained $50m of debtor-in possession financing from Wells Fargo Retail Finance.

"Though the economy has taken its toll on the retail industry, our operations and initiatives have performed well against the competition because of our strong brand, our people and the loyalty of our customers," said Hal Smith, CEO and president.

"This restructuring process will allow us time to address our capital challenges so that we can potentially emerge an even stronger company with a firm financial position."

The bankruptcy filing comes just two years after the Wilsonville, Oregon-based retailer was acquired by California investment firm Gryphon Investors.

David Andrews, president and managing general partner said Gryphon invested more equity capital this time last year to provide additional liquidity as the economy and retail environment worsened.

But its plans to invest extra capital were scuppered after it was unable to agree acceptable terms with lenders.