Report: Sports Authority files for Chapter 11 bankruptcy
Troubled retailer Sports Authority has filed for Chapter 11 bankruptcy protection to try to reorganize its business, according to news bulletin from Bloomberg.
The Wall Street Journal reported this week a filing was likely to happen.
Sports Authority Field at Mile High is the home stadium for the Denver Broncos. Source: Getty Images
As the Journal reported
:
The company, which operates about 450 stores, has agreed to take up to $595 million in bankruptcy financing from senior lenders including Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co. and TPG, the people said.
As a condition of the loan, Sports Authority would close and clear out dozens of stores after filing for chapter 11, some of the people said. The company would need to close the rest of its store base by the end of April if it can't find a buyer that would put more money into the business, they added.
The potential for Georgia store closures is not immediately known.
Sports Authority is controlled by private equity firm Leonard Green & Partners. The firm bought the retailer in 2006 $1.3 billion, the Journal reported.
Many big box retailers including Macy’s and Walmart have announced store closures amid a fractured retail landscape and the rise of e-commerce. Sports Authority stores also are large footprint outlets that are heavy toward golf, a sports that has seen its popularity wane over the years.
Many retailers also have been hit by the rise of so-called “ath-leisure” apparel companies such as Lululemon.
About the Author
J. Scott Trubey is the senior editor over business, climate and environment coverage at The Atlanta Journal-Constitution. He previously served as a business reporter for the AJC covering banking, real estate and economic development. He joined the AJC in 2010.
