Sports Authority Files for Bankruptcy: 450-Store Closure Could Leave 14,500 People Jobless

Breitbart ^ | May 2,2016 | Jerome Hudson

[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.

[sheana]

I went looking for a kayak. They were already gone. ;(

[Uncle Miltie]

CMC ‘84 Econ Cum Laude.

I’ll be fine.

[CurlyDave]

That has to be the most self centered approach to this issue I've ever seen. Really? You think you helped alleviate a housing shortage? The psychology of your post is frightening.

Your misunderstanding of economic principles is the frightening part.

A housing shortage in an entire region is the sum of thousands, and hundreds of thousands of individual decisions. Our personal move didn't do a lot but the sum of similar decisions by many, many individuals does have an effect.

My point was that the societal changes brought about by purchasing on the internet as opposed to in local stores does make it easier for people to move out of congested areas when their livelihood no longer depends on being in that area. Reducing the incentives to stay in a congested area absolutely does alleviate a housing shortage.

I view this as a net positive for the county as a whole.

As far as "frightening psychology" goes, using a personal example as a literary device is common practice.