Breaking news in the sports world today as the sporting goods chain store Sports Authority will close 143 stores. This is a part of their Chapter 11 bankruptcy that they filed for on Wednesday. The stores will be closing in 27 states.
The Englewood, Colorado-based sporting goods chain says that they are in $1.1 billion in debt and that sales have been going downward since they have not kept up with recent consumer trends. Liquidation sales will begin as soon as possible and they will last for several weeks. When inventory is completely sold out, the stores will close.
This is shocking news for the store as 25 stores in Texas 19 in California, 18 in Florida and 11 in Illinois will be close. Sports Authority are currently negotiating with prospective buyers for the stores for retail or liquidation purposes. This is somewhat positive news for the company as it will get some revenue.
Despite recent events, the Denver Broncos, as of now, will still have Sports Authority as current naming rights holder. Since 2011 the Broncos have been playing at “Sports Authority Field at Mile High” and hopefully it can stay like that for the company.
Sports Authority has no momentum going for them now with this news now release to the public. I remember when there was a store in my town in Montgomery, AL. It did not last long, mainly because of big stores like Academy and Dick’s Sporting Goods being around. To me, Sports Authority need to close more stores to cut their debt in half.