Sports Authority Files Chapter 11 Bankruptcy. May Close Up to 140 Stores
Posted on March 2, 2016
Sports Authority has filed for Chapter 11 bankruptcy protection. The sporting goods retailer says it expects to get access to up to $595 million in debtor-in-possession (DIP) financing. It has also identified about 140 stores it may close or sell during the next three months.Sports Authority CEO Michael E. Foss says in a statement, "We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry. We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations."
The company says the majority of its stores are expected to continue without interruption. It also says the it pursuing two dual tracks. One potential track could be the sale of some or all of its assets. A Bloomberg report says Sporting Goods has discussed selling stores to its rival sporting goods chains Dick's Sporting Goods and Modell's.
In a separate release, A&G Realty Partners announced today that it has been hired to manage the sale of 87 Sports Authority leases. A&G is currently accepting bids on these leases.
Sports Authority also shared a message for customers on its website. The message says they don't expect the bankruptcy filing to have an impact on gift card balances at this time.