May 01, 2016 8:09 PM GMT
OMG, another brick and morter closing, this one just as big as Circuit City
When Sports Authority closes all stores (chapter 11 bankruptcy), these retailers win
This month, Sport Chalet, a 57-year-old chain based in La Cañada Flintridge, said it was closing all 47 of its stores after years of financial troubles. And this week Sports Authority, which filed for bankruptcy protection in March, said it will ditch its reorganization plan and instead hold an auction for the company, potentially selling it off in pieces.
Sports Authority Closing All Stores
Say goodbye to Sports Authority. The sporting goods retailer will liquidate all stores and wind down operations in the coming months. It’s the final chapter in its quest to reorganize under Chapter 11 bankruptcy protection.
Sports Authority notified the U.S. Bankruptcy Court that the company would be able to reorganize and would pursue a sale instead.
That means all 450 stores will close.
Sports Authority filed for Chapter 11 in March, saying at the time it would close 140 stores and two distribution centers.
But the retailer is saddled with more than $1.1 billion in debt and won’t be able to reorganize.
Sporting goods brands have been increasingly under pressure and consolidation within this category will likely increase. There is also talk that Bass Pro Shops is interested in buying Cabela’s.
Sports Authority hasn’t updated its website to reflect this news, but consumers can expect sales and discounts to accelerate.