Sports Authority could sell stores to Dick's

Sports Authority is preparing to file for bankruptcy and is in talks to sell stores and intellectual property to Dick's Sporting Goods.

The retailer has already begun closing stores in several markets and could shutter as many as 200 of its 450 locations.

Several options to dispose of stores and property are being considered for after a Chapter 11 bankruptcy filing, sources close to the matter told Bloomberg Business. The company has been talking to lenders about a reorganization plan.

Sports Authority is owned by private equity firm Leonard Green & Partners LP. It missed a $21 million interest payment in January and promptly laid off 100 employees at its Englewood, Colorado headquarters. The company is carrying close to $643 million in debt.

Consolidation in the sporting goods industry is heating up thanks to increased competition from athletic wear companies Lululemon, Gap's Athleta and upstart Fabletics. In November, privately held Bass Pro Shops was reportedly in talks to buy Cabela's.

For more:
-See this Bloomberg Business article

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