Sports Authority Files for Bankruptcy, Closing 140 Stores
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Sports Authority Inc. has filed for Chapter 11 bankruptcy protection. As part of the action, the Englewood, CO-headquartered company will sell or close about 140 stores over three months time. “We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” said Michael Foss, CEO of Sports Authority.
Sports Authority has hired Melville, NY-based A&G Realty to dispose of 87 leases, and to help reduce occupancy costs as part of the process. A&G indicated that the company will exit Texas, and “good locations” are available in California, Florida and Puerto Rico.
Multiple sources noted that the filing wasn’t a surprise, given competition from Dick’s Sporting Goods, as well as online sellers. The sporting-goods retailer was also reportedly having problems paying suppliers and creditors.
