April 28, 2016
Close to two months after filing for Chapter 11 bankruptcy protection, Sports Authority Inc. has announced that it is unable to restructure its debt. As such, the Englewood, CO-based sports retailer will be liquidating, rather than reorganizing.
Sports Authority had more than $1.1 billion in debt when it filed for bankruptcy in early March. At the time, the company indicated it would cut back on operations and restructure, while looking for buyers. But according to company attorney Robert Klyman, the “debtors will not reorganize under a plan, but instead will pursue a sale.”
An auction for the bulk of Sports Authority’s operations is scheduled for May 16. Dick’s Sporting Goods is one of the bidders examining Sports Authority’s assets.