With no buyer in sight, American retailer Sports Authority will close the doors in all its remaining stores forever. The company was once the authority in the United States' sporting goods retail industry.
Sadly, Sports Authority has reached its last two minutes in the retail game. According to a recent bankruptcy court document filed in Delaware, the retail brand will hold a series of "going-out-of-business" sales in all of its remaining branches.
On the brighter side, the document said the company found several buyers for its remaining inventory, fixtures, furniture and other surviving assets.
Sports Authority filed for bankruptcy in March this year and announced that 140 out of its 450 stores are scheduled to close because of financial crisis. During this time, the company had 14,500 employees of which two-thirds were working part-time.
When the retailer failed to close a credit deal, Sports Authority said it will sell all of its assets while holding onto the hopes of finding a buyer that could keep the chain alive. Sadly, the burning torch they desperately held onto is dying a losing battle.
"Someone who wants to shop in a brick-and-mortar store and try on the baseball glove, or get the feel of a golf club, wants a better shopping experience. That's not Sports Authority anymore," said Larry Perkins, a retail reorganizations expert from SierraConstellation Partners.
The company has not made any formal announcements and a spokeswoman gave no comments on the recent turn of events. The new bankruptcy document also did not give further details when the surviving stores will close for good.
Founded in 1987 in Fort Lauderdale, Sports Authority was once the go-to place for sporting goods. Kmart acquired it in 1990 and in 2006, it was purchased by a private equity firm.
Sports Authority, like many of its kind, has struggled amidst competition, especially from its online counterparts.
Many American stores are also going bankrupt. RadioShack and American Apparel both filed for bankruptcy in 2015. The two managed to stay afloat by operating with fewer stores. Sport Chalet also began closing stores in April this year.
While technically not bankrupt, other American chains are closing the doors of their least competitive branches, including Kohl's, Walmart, Sears, Macy's, Target, and Kmart.
Photo: Phillip Pessar | Flickr
