Sports Authority, Englewood, Colo., will sell all of its holdings in lieu of coming out of bankruptcy as an independent company, according to The Denver Post.
“It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale,” said company attorney Robert Klyman in United States Bankruptcy Court in Wilmington, Del.
Sports Authority filed for Chapter 11 bankruptcy protection in March to rework $1.1 billion in debt. If it proceeds with liquidation, it is likely that Sports Authority Field at Mile High, where the Denver Broncos play, will carry a different name next season.
Judge Mary Walrath threatened to push the case into Chapter 7 out of concern that the money from liquidation sales would only pay off some Sports Authority creditors and not others. Under Chapter 7, a trustee would oversee the liquidation.
With the company in full sale mode, large sporting goods chains such as Dick’s Sporting Goods and Academy Sports represent likely buyers.
For more information, visit sportsauthority.com. — J.B.