Sports Authority Filed for Bankruptcy, Closing 140 Stores

March 2, 2016 BETHELADVOCATE Announcements, Around Town, Business, Consumer, Local Businesses 156

On Wednesday the sporting goods retailer Sports Authority filed for Chapter 11 protection in federal bankruptcy court in Delaware and indicated it will close 140 of its stores, which is approximately one third of the total stores.  The closings will take place over the next three months.

 

Report by Paula Antolini
March 2, 2016 1:50PM EDT

 

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NATIONAL NEWS

Sports Authority Filed for Bankruptcy, Closing 140 Stores

When Sports Authority missed a $20 million debt payment since last January, the knew bankruptcy was near, reports CNN Money.

On Wednesday the sporting goods retailer Sports Authority filed for Chapter 11 protection in federal bankruptcy court in Delaware and indicated it will close 140 of its stores, which is approximately one third of the total stores.  The closings will take place over the next three months.

“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 E. Foss, chief executive officer of Sports Authority, in a statement. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially,” reports Fortune.

Fortune also writes, “In many ways, this Chapter 11 filing could be a blessing for many [stores] if a leaner Sports Authority proves able to take advantage of this second chance.”  They report that Dick’s Sporting Goods, which operates 744 stores, will now have more of the market to itself.

Sports Authority’s 450 stores and offices employs 14,500 full- and part-time employees and has $1 billion in liabilities and assets valued between $500,000 and $1 billion, CNN Money reports.

Store closings seems to be “the hottest trend in retail” nowadays, CNN Money reports.  The following stores are listed as being in financial trouble, are under-performing, or sales are plummeting or sluggish: Best Buy, Kohl’s, Sears, Kmart, Macys, the Gap, Walmart and JCPenney.

Meanwhile, companies benefiting from others’ losses are Amazon, H&M, Zara, TJX (which owns T.J. Maxx and Marshalls) and Target.  Also a good housing market seem to be helping Home Depot and Lowe’s.  Regarding high-end home furnishings retailers, Restoration Hardware claims its sales will weaken.

Despite lower gas prices and rising wages people seem to be paying down debt instead of spending, CNN Money reports.

 

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