May 4, 2016
Despite reports that Englewood, CO-based Sports Authority would be scrapping reorganization in favor of liquidation, the beleaguered sporting-goods retailer insisted this wasn’t the case. It’s attorney says that, while the company is proceeding with an auction to sell off assets later this month, it isn’t liquidation. No bidder has stepped forward yet with a committed offer.
Sports Authority also received approval from its lenders for bankruptcy financing, which had been denied before. As such, the case is still a Chapter 11 filing. This means assets sold can bring a higher price than if converted to a Chapter 7 liquidation. Additionally, the decision has yet to be made as to whether all 450 Sports Authority stores will actually be shuttered.