Sports Authority is filing for Chapter 11 bankruptcy protection.
The retailer said Wednesday that it plans to close or sell about 140 stores and two distribution centers, in Denver and Chicago. The Englewood, Colorado, company has 463 stores in 41 states and Puerto Rico. The store closings are expected to take up to three months.
Sports Authority stores will remain open and run on normal schedules during the Chapter 11 process. The company’s website will continue to function, and the chain plans to honor warranties on items purchased at its stores or online.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” CEO Michael Foss said in a written statement. The executive said that it needs fewer stores as consumers are increasingly shifting to online shopping.
The retail industry as a whole has struggled with the consumer move to online shopping, trying to find ways to lure customers to brick-and-mortar stores instead. Macy’s Inc. has opened Macy’s Backstage, in order to go head to head with discount retailer T.J. Maxx. And J.C. Penney Co. is using store-label offerings to fight against pricing pressures from online rivals and recently launched a new campaign called “Get Your Penney’s Worth,” which offers certain store-label items for pennies.
In a letter to customers posted on the company’s website, Foss said that Sports Authority’s long-term plan includes upgrading stores and improving its website.
Foss said that The Sports Authority Inc., which is privately-held, has received interest from third parties that may want to invest in or buy some or all of the business. The company plans to continue evaluating all of its options, he added.
Sports Authority said that it expects to have sufficient liquidity during the Chapter 11 process when factoring in cash from operations and anticipated access to up to $595 million in debtor-in-possession financing.
Sports Authority made its Chapter 11 filing in the United States Bankruptcy Court for the District of Delaware.
The Associated Press contributed to this article.
they went down the toilet when they stopped selling fishing and hunting stuff I was a frequent customer until that happened
I hav,nt been in one of their stores in years all they sell now is ball sports related stuff
Ignoring the real sports people always results in a disaster!
When it was Gart Brother’s it was a fun store to shop. Then like the guy above said it became all ball sports all the time…and generic. That and new investors as happens many times, ruin the recipe.
Well, Sports Authority, I bought a home exercise machine and a set of dumbbells. So I gave you some recent business. I have no problem with what I bought. It was good as advertised, and I’m fully satisfied. This crappy economy will force many businesses to join you soon. Too bad for the honest hard-working employees. I hope you land on another job soon!!