Sports Authority files for bankruptcy, closing 140 stores
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There will be 140 fewer Sports Authority stores across the country.
The sports goods store filed for bankruptcy early Wednesday morning, according to CNN Money.
The bankruptcy filing says that the company has 463 locations across 41 states and Puerto Rico and 14,500 full- and part-time employees.
It is not clear what stores will be closing.
The company has over $1 billion in liabilities and its assets are valued between $500,000 and $1 billion.
"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry," Michael E. Foss, chief executive officer of Sports Authority, said in a press release Wednesday.
"We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations."
The company asked the court to authorize its continued payment of employees' salaries, wages, benefits and customer programs with no charge.
The request is routine in these cases, according to the release.
The company will borrow up to $595 million to continue operations while in bankruptcy.
The challenge for Sports Authority will be finding a buyer to pay off the loan and come out of bankruptcy.
