As it was foretold, so it has come to pass — and quickly: National retail chain Sports Authority Inc. is filing for bankruptcy today.
Bloomberg reports that the troubled company filed its Chapter 11 reorganization plan in court in Delaware this morning.
The problem, as Bloomberg explains, is that although plenty of Americans are still pursuing athletic activity and fitness goals, Sports Authority just hasn’t kept up. Rival chain Dick’s — to whom Sports Authority has reportedly been considering selling their stores — has hundreds more locations and makes significantly more money in each one. Combine that with billions in debt, and it’s a recipe for disaster.
CEO Michael Foss said in a statement that the beleaguered company will, “use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”
Rumors began to circulate almost exactly a week ago that the company might need to declare bankruptcy as soon as March, after missing a January deadline to work out a deal with creditors.
Sports Authority Files Bankruptcy After Missing Fitness Boom [Bloomberg]
by Kate Cox via Consumerist
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