Friday, March 04, 2016
Sports Authority Files for Chapter 11, Plans to Sell or Close About 140 Stores
Englewood, Colo. — Facing stiff competition on the retail playing field, particularly online, Englewood-based Sports Authority Inc. announced today that it has filed for Chapter 11 bankruptcy protection.
The company plans to sell or close about 140 stores, or nearly one-third of its locations. The store closing process is expected to take up to three months.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” said Michael Foss, CEO of Sports Authority, in a press release. “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 decision follows a comprehensive review of the Sports Authority portfolio in light of the increasing amount of shopping that is occurring online, the company stated. “As a result of these changes in consumer buying patterns, Sports Authority determined that it needs fewer stores as part of its long-term business model,” according to the press release.
By Katie Sloan of Shopping Center Business