Sports Authority has failed in its attempt to reorganize instead of filing for bankruptcy. They informed the U.S. Bankruptcy Court that they would attempt to sell instead of reorganizing.
All hope is not lost for the retail chain. The auction of the company’s assets begins on May 16, and it is possible that a buyer might keep some stores open. All 450 stores will most likely be liquidated if this is not the case.
The company said it would close two distribution centers and up to 140 stores when it filed for bankruptcy back in March and hoped that would help, but they have more than one billion dollars in debt.
The retail chain has not made an official consolidation announcement on its website, but stores will mostly likely increase sales and discounts.
Consolidation within sporting goods brands will probably continue as the category has been under a lot of pressure. Bass Pro Shops may purchase Cabela’s in the future.
(Now Closed! img via stores.sportsauthority.com)
(header img via business.transworld.net)