Posted on 05/02/2016 8:49:41 PM PDT by Hojczyk
Outdoor apparel giant Sports Authority has filed for Chapter 11 bankruptcy protection and the retail chain could close all or most of its 450 stores nationwide as it struggles to pay off a reported $1 billion debt.
Sports Authority is pursuing a sale of some or all of the business, a company statement said. We have received initial expressions of interest from a number of potential buyers, and we are optimistic about the results of the sale process.
Founded in 1928, the athletic apparel retailer was once the largest sporting goods chain in America.
In the years after its 2006 leveraged buyout by Leonard Green & Partners, Sports Authority saw a slump in sales due to competition from mega retailer Dicks and online merchants.
In its initial bankruptcy filing last month, Sports Authority was hoping only to close 140 stores while keeping its remaining stores open under its well-known trademark name. Closing all of its 450 stores could leave 14,500 people without jobs.
And Sports Authority may soon join the ranks of a growing number of now-shuttered brick-and-mortar retail giants. Circuit Citys 2008 bankruptcy and complete implosion was followed by Blockbuster in 2010 and Borders in 2011.
Alternatively, some big brands like K-Mart (filed Chapter 11 bankruptcy in 2002) and Radio Shack (filed Chapter 11 bankruptcy last year) have found some economic success by dumping debt through bankruptcy.
(Excerpt) Read more at breitbart.com ...
Rite Aid will snap that right up.
Unfair Chinese trade did it!
I went by a Sports Chalet here in SoCal and they are closing that store. What happened to that Summer recovery that Biden was talking about?
Which one?
..What happened to that Summer recovery that Biden was talking about...
Obama/Biden...smoke and mirrors.
hope and changey!
They should sell off their bathrooms first. Seems to be a demand for them.
“U Pick Up!”
Never mind. It looks like they are all closing.
The Sport Chalet has been a thriving sport store since I was in my teens 46 years ago.
I used to stop by the original in La Canada to purchase things.
LBO bankers make out like bandits while leaving companies in debt that is unsustainable..they also did not compete well
Yea, well if you knew anything about retail, you'd know that unfair Chinese trade IS part of the problem. Has to do with container lot inventory requirements, trademark and patent violations, exchange rate manipulation, unreliable quality control, etc.
Sometime you should take a business economics class at the local Community College. Well worth the time investment.
Can’t argue with that, if they are going down.
I used to frequent the Sports Authority and their massive inventory left me wondering how they could survive.
We’re talking a massive interior.
I’m not convinced brick and mortar anything is a great proposition these days, unless you’re selling food.
Beach Blvd in Orange County. South of the 405 frwy on the East side.
Raise the min wage, inundate business with nonsensical rules, and of course, build multimillion dollar choochoos to places like Fresno.
.
Remember when Mitt Romney told us how great it was that his Bain Capital saved Sports Authority? The Chickens have come home to Roost!
+1000
Amazon has cannibalized the brick and mortar business.
Why drive to the store when you can buy it online and receive it in two days?
No wonder physical stores are shutting down left and right.
With people increasingly accustomed to buying online, stores like Sports Authority have been left high and dry.
Its truly the end of an era.
So now the Denver Broncos will be playing in “Bankrutpcy Field”.
Okay. Thanks. I frequented the one in La Canada in my teens in the 60s.
I mentioned that. You may have already seen it.
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