Polly Brothers Files For Bankruptcy

One of the Philadelphia area's largest sporting-good chains, Polly Brothers, has filed for protection under Chapter 11 of the federal bankruptcy code.

Marvin Polakoff, president and founder of the Bensalem-based company, said yesterday that the company's 12 stores would remain open while the company's finances are reorganized under the supervision of the bankruptcy court. Chapter 11 protects a company from creditors while restructuring its debts.

Polakoff was vague about what prompted the bankruptcy filing.

"We had some problems financially. There are five executives that are no longer with the company," he said. When asked to elaborate about the management problem, Polakoff would say only, "It was a lack of working, a lack of doing.

The Bensalem-based parent company, Polly Brothers Inc., filed for bankruptcy on Dec. 30 in U.S. District Court in Philadelphia. On Tuesday, five of the stores - in Cherry Hill, Neshaminy Mall, Gallery II, Burlington and Exton Square - also filed.

Pace Reich, an attorney for Polly Brothers, said the separate filings were neccessary because some of the stores were set up as subsidiaries of the parent company. The bankruptcy filings cover ALL 12 Polly Brothers stores.

The filings did not disclose the company's assets and liabilities.

Polly Brothers, which is privately held, has annual sales of about $10 million, according to Polakoff. Sales in recent months have been "about just fair," he said, adding that many other sporting-good merchants he's spoken with are facing similarly sluggish sales.

Founded by Polakoff more than 40 years ago, the chain is now the second- largest sporting-goods retailer in the Philadelphia area, second only to Herman's World of Sporting Goods.

Polakoff said the company has never sought bankruptcy protection before. ''Until this came up, I didn't know what a Chapter 11 was . . . It's not something I'm proud of."