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Sports Authority Files for Bankruptcy: 450-Store Closure Could Leave 14,500 People Jobless
Breitbart ^ | May 2,2016 | Jerome Hudson

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 ...


TOPICS: Business/Economy
KEYWORDS: bhoeconomy; chapter11; layoffs; retail; sportsauthority
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1 posted on 05/02/2016 8:49:41 PM PDT by Hojczyk
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To: Hojczyk

Rite Aid will snap that right up.


2 posted on 05/02/2016 8:50:57 PM PDT by A CA Guy (God Bless America, God Bless and keep safe our fighting men and women.)
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To: Hojczyk

Unfair Chinese trade did it!


3 posted on 05/02/2016 8:52:48 PM PDT by Uncle Miltie (All Hail!)
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To: Hojczyk

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?


4 posted on 05/02/2016 8:53:12 PM PDT by Parley Baer
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To: Parley Baer

Which one?


5 posted on 05/02/2016 8:54:43 PM PDT by DoughtyOne (He wins & we do, our nation does, the world does. It's morning in America again. You are living it!)
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To: Parley Baer

..What happened to that Summer recovery that Biden was talking about...

Obama/Biden...smoke and mirrors.


6 posted on 05/02/2016 8:55:44 PM PDT by Sasparilla (Hillary for Prison 2016)
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To: Hojczyk

hope and changey!


7 posted on 05/02/2016 8:58:22 PM PDT by max americana (fired every liberal in our company at every election cycle..and laughed at their faces (true story))
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To: Hojczyk

They should sell off their bathrooms first. Seems to be a demand for them.

“U Pick Up!”


8 posted on 05/02/2016 8:59:19 PM PDT by moovova
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To: Parley Baer

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.


9 posted on 05/02/2016 9:00:09 PM PDT by DoughtyOne (He wins & we do, our nation does, the world does. It's morning in America again. You are living it!)
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To: DoughtyOne

LBO bankers make out like bandits while leaving companies in debt that is unsustainable..they also did not compete well


10 posted on 05/02/2016 9:02:54 PM PDT by ground_fog
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To: Uncle Miltie
Unfair Chinese trade did it!

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.

11 posted on 05/02/2016 9:03:13 PM PDT by The Citizen Soldier ("It's always good to be underestimated." ~Donald Trump)
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To: ground_fog

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.


12 posted on 05/02/2016 9:05:24 PM PDT by DoughtyOne (He wins & we do, our nation does, the world does. It's morning in America again. You are living it!)
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To: The Citizen Soldier


Well worth the time investment.

In lieu of snark, would you be willing to impart a layman economics lesson?
13 posted on 05/02/2016 9:07:32 PM PDT by SunLakesJeff (All Mass Has Gravity. Gravity, however, is subject to Judicial Review.)
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To: DoughtyOne

Beach Blvd in Orange County. South of the 405 frwy on the East side.


14 posted on 05/02/2016 9:09:30 PM PDT by Parley Baer
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To: Hojczyk
The Dems have the solution for this.

Raise the min wage, inundate business with nonsensical rules, and of course, build multimillion dollar choochoos to places like Fresno.

.

15 posted on 05/02/2016 9:09:58 PM PDT by Seaplaner (Never give in. Never give in. Never...except for convictions of honour and good sense. W. Churchill)
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To: Hojczyk

Remember when Mitt Romney told us how great it was that his Bain Capital saved Sports Authority? The Chickens have come home to Roost!


16 posted on 05/02/2016 9:12:15 PM PDT by SubMareener (Save us from Quarterly Freepathons! Become a MONTHLY DONOR!)
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To: The Citizen Soldier

+1000


17 posted on 05/02/2016 9:15:09 PM PDT by Mollypitcher1 (I have not yet begun to fight....John Paul Jones)
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To: Hojczyk

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.


18 posted on 05/02/2016 9:15:52 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: Hojczyk

So now the Denver Broncos will be playing in “Bankrutpcy Field”.


19 posted on 05/02/2016 9:17:41 PM PDT by Cololeo
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To: Parley Baer

Okay. Thanks. I frequented the one in La Canada in my teens in the 60s.

I mentioned that. You may have already seen it.


20 posted on 05/02/2016 9:18:10 PM PDT by DoughtyOne (He wins & we do, our nation does, the world does. It's morning in America again. You are living it!)
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