Sports Authority files for bankruptcy

Sports Authority has filed for Chapter 11 bankruptcy protection, will close 140 stores and has agreed to accept $595 million in financing.

"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry," said CEO Michael Foss. "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 will close or sell 140 stores and two distribution centers (Denver and Chicago). It was reported earlier this week that Sports Authority could sell some stores to Dick's Sporting Goods.

Sports Authority has been working with outside financial advisors and as a result of a strategic review of the business, the retailer is having discussions with its creditors regarding debt restructuring and is exploring a recapitalization for business through a sale of some assets.

The company expects to have access to up to $595 million in debtor-in-possession financing, subject to court approval.

"Given our strong brand recognition with a large and growing customer base, valuable business assets and loyal team members, we have received strong interest from third parties interested in investing in or buying some or all of Sports Authority," said Foss. "We intend to continue evaluating all options to maximize the value of the organization and position us for sustainable success in our industry."

For more:
-See this Sports Authority press release

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