Sports Authority Abandons Hope of Reorganizing and Opts for Liquidation

[mahatmakanejeeves]

Not LBN, even though it's popping today at Google News.

Sports Authority Abandons Hope of Reorganizing and Opts for Liquidation

Company will instead count on buyers to save parts of its sprawling retail chain

By Peg Brickley
[e-mail]

Updated April 26, 2016 2:34 p.m. ET

Sports Authority has abandoned hope of reorganizing and exiting bankruptcy and instead will count on buyers to save parts of its sprawling retail chain, company lawyer Robert Klyman told a judge Tuesday.

”It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale,” Mr. Klyman told Judge Mary Walrath at a hearing in the U.S. Bankruptcy Court in Wilmington, Del.

Loaded with more than $1.1 billion in debt, Sports Authority filed for bankruptcy protection in March, saying it would attempt to trim its operations and restructure, while looking for buyers as an alternate path. Now the alternative route is the only path forward for the distressed retailer, an employer of thousands of people.

Some stores were already being closed when the bankruptcy filing came, others were to follow, and a May 16 auction is set for the bulk of Sports Authority’s operations.

[djean111]

1. I guess when people lose jobs, make less money, and are uncertain of their future,

they don't buy sports equipment.

Who could have seen that coming? And who doesn't see that coming for other businesses? I am sorry the employees will lose their jobs, and likely have trouble finding decent new ones. I think this sort of thing is going to be widespread. The rich can still but expensive stuff on the internet, the poor may be able to buy at Walmart. The middle - gone.

[mahatmakanejeeves]

2. It's the bricks and mortar thing.

Why go to the store when you can buy the same thing online and get free shipping too?

[47of74]

3. I liked the one at River North in Chicago

I'd take the elevator up to the top floor then make my way back down to the ground floor from there.

That sucks that it'll be closing.