Sports Authority delays auction

Sports Authority has pushed back its planned bankruptcy auction to May due to "substantial" interest from potential bidders.

A lawyer for the chain told Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Delaware, that Sports Authority is hoping to attract a bidding war for its stores and inventory, according to The Wall Street Journal.

The request has been approved and the sale will be split into two: Leases for 109 stores will be auctioned May 4 and the remaining assets made available to bidders on May 16. The retailer operates 464 stores.

Sports Authority filed for Chapter 11 bankruptcy protection in March and said it would close or sell 140 stores and two distribution centers (Denver and Chicago).

At the time, the retailer agreed to close a sale of assets by the end of April. The extra month was requested to appease creditors and landlords, who wanted to attract more bidders.

For more:
- see this Wall Street Journal story (tiered subscription)