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 Dick’s 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 City’s 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 ...
Actually I would.
Some background: I spent the last 27 years in retail (including, but not limited to, the sporting goods market). 19 of those years I owned a wholesale/resale business, which I sold at the end of 2015. Having retired, I have actually enjoyed consulting with several companies in the last few months.
You haven't asked my consulting fee, but if you're serious, I'll be glad to discuss that with you via DM.
Interesting. One opened in my town only about 2 years ago. Now that it’s going teats up, a Dick’s Sporting Goods, near-by, just broke ground a month ago.
With the shift to on-line purchasing and a general shift to computer game couch potatoes, I don’t give the Dick’s much of a chance either.
“So now the Denver Broncos will be playing in “Bankrutpcy Field”.”
Technically, I believe that should be “Bankruptcy Field at Mile High”
You are right, the internet has changed everything ... I will however shop local if I can , even if it costs me more.. it helps keep stores and jobs here ..i’m in coal country and we need every job we can keep ...
Dick’s is very high quality. They sell top brand golf equipment, rifles and ammo, have an indoor archery range, on site bicycle repair etc.
Yeah? So?
You’re a racist!
/sarc(???????)
I’m with you.
I’d rather pay 20% more so they guy down the street can work.
If we want healthy communities, we MUST do that.
This is vital. Our nation hangs in the balance on this issue. I think it’s that important.
Amen bro...you are so right
Thank you. Glad we could agree on this.
Yes. Shop local!
Cabellas and Bass Pro Shops might really hurt them
THey have everything except ski and surfing equipment
“:^)
Could be. I’m not familiar with them.
No joke, one of the largest pot dispensaries in the state has offered to buy the naming rights to the stadium.
The Sports Authority in Ventura, CA employs one outstanding individual who is 18, male, smart, responsible and already in management at Sports Authority. He was accepted by UCLA and his job gave him tons of learning and business experience.
Sad to see good jobs go away.
All you are doing is prolonging his death struggle. Someone else who can sell the same item for 20% less will always put him out of business.
This is vital. Our nation hangs in the balance on this issue. I think it’s that important.
I think you are wrong. People who thought your way wanted us to maintain a strong, healthy buggy whip industry a century ago.
You are attempting to prevent progress by subsidizing inefficiency. DW and I retired and moved to a rural area several years ago. One of the things that made this possible was Amazon Prime. i don't have to live near a big city to get anything I want delivered , and at competitive prices.
There are unintended consequences which may change out society for the better. For instance, the SF Bay Area that we came from has a severe housing shortage. Without being able to order advanced products on the internet, we would have stayed put. By moving we helped to alleviate this housing shortage. Amazon didn't intend to help alleviate the housing shortage in northern California, but they did. Is this more or less important to the nation than to have a few more years of employment for a store clerk in our rural town?
You are correct, but spending more requires that people have more disposable income. Wages have been flat, and most hourly workers are part time under 40 hours. Retail sales are in a dive. Most consumers are only buying the things that they need. When people can only buy necessities the economy is in bad shape.
They could make a movie about it.
"Summer of Recovery, Part 6...Return of the Green Shoots"
Think they’ll have Chuck Taylor All-Stars on sale?
Let me add one more thing. It turns out that there are two growing industries in our little town. One is nursing homes and elder care, which is sort of obvious for a rural retirement community.
However, the second surprised me a little -- call centers. It seems that after an infatuation with india, a lot of companies have discovered that their customers would rather talk to someone who speaks colloquial American English and who they can understand.
Now, would you rather have someone be a clerk in a retail store or a customer service rep? The pay is on the lower end in both cases, but the store clerk just reshuffles money that is already in the community. The call center worker is paid by a corporation from outside the local community, so they are net importers of money. Which is better for the community? I think it is the job that brings in outside money.
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