Sports Authority, Englewood, Colo., has filed for Chapter 11 bankruptcy protection as it faces $1.1 billion in outstanding debt.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” says Michael E. Foss, CEO, Sports Authority. “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.”
Sports Authority will continue to operate on normal schedules for the time being, though the company plans to eventually close or sell 140 stores and two distribution centers in the coming months. This is partially due to an increase of online shopping, according to a company statement.
The company has been and will continue to restructure its debt and explore a recapitalization of the business through sales of some or all of its assets.
“We intend to continue evaluating all options to maximize the value of the organization and position us for sustainable success in our industry,” Foss says. “As it has been from the beginning of the strategic business review process, our primary objective is doing what is in the best interests of our employees, customers, suppliers and creditors.”
Sports Authority has asked the United States Bankruptcy Court for the District of Delaware for authorization to continue paying employees’ wages, salaries and benefits, and to continue its customer programs.
For more information, visit sportsauthority.com. — J.B.