If you liked to shop at Sports Authority for apparel and equipment, you will need to act fast to catch any more last-minute liquidation sales. In late June, U.K. sporting goods retailer Sports Direct International PLC entered talks with Modell’s Sporting Goods about a potential deal to acquire as many as 200 Sports Authority stores out of the retailer’s bankruptcy, which was filed in March. By the end of the bankruptcy auction, no buyers offered up plans to keep any of the 460-odd stores open.
In response to the unsuccessful purchase, a company-wide liquidation of inventory has occurred and the bankruptcy is being accelerated. It appears that the company plans on turning its locations completely dark by the end of July with perhaps a handful staying alive through August. Several store managers that were interviewed by The Wall Street Journal reported that they had been instructed to clear out the company computers, lock up their stores, and leave.
The sudden and dramatic bankruptcy procedure caught many employees, including part-time hires for the summer and loyal managers, off-guard. When retailers go out of business, the process is usually staggered over the course of months or more as locations shut down one-by-one. Sports Authority, which was caught in a legal battle between lenders and suppliers, closed up much quicker, with first indications of total closure only coming as early as late May. In an interesting depiction of how economies are tied together, many vendors are also feeling the impact of the company’s bankruptcy; Under Armour reported noticeable drops in its own revenue due to the loss of a major distributor of its goods.
As trusted Mesa bankruptcy attorneys, our team at Law Offices of Campbell & Coombs P.C. are interested to see how Sports Authority’s filing will ultimately conclude. Be sure to visit our blog for important updates on this story. If you need help with a bankruptcy filing of your own, contact our team today and we can tell you what to do next.