Sports Authority will abandon attempts at reorganization under Chapter 11, choosing instead to liquidate.
The company's lawyer Robert Klyman notified the court on Tuesday, according to reports. "It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale," he said.
The sporting goods retailer has more than $1.1 billion in debt.
Sports Authority filed for Chapter 11 bankruptcy protection in March and said at the time it would close or sell 140 stores and two distribution centers. It later pushed back its planned bankruptcy auction to May due to "substantial" interest from potential bidders.
Bidders are indeed looking over Sports Authority's assets, but now that includes all of them.
- see this MarketWatch article