Liquidators have prevailed and a consortium of three purchased the assets of Sports Authority at auction, ending any speculation that stores might remain open.
The winning group includes Tiger Capital Group, Hilco Global and Gordon Brothers, who agreed to pay 101 percent of the cost of the inventory and a $1.8 million augment guarantee, a person close to the matter told The Wall Street Journal.
Sports Authority had hoped to get bids from other retailers, and both Modell's and Dick's Sporting Goods were reportedly interested. But both proffered disappointing bids and ultimately the liquidators won out.
The company filed for Chapter 11 bankruptcy protection March 2 and said at the time it would close 140 stores to aid in organization. But by late April it was clear that reorganization wasn't in the cards for Sports Authority and an auction was set for its assets.
Liquidation is now for certain. Still in question are the naming rights to the Denver Broncos' stadium. The team's owners claim that Sports Authority doesn't have the power to sell those rights, and that the retailer remains responsible for an ownership payment of $1 million dues May 1.
- see this Wall Street Journal story (tiered subscription)