Sports Authority Goes Chapter 11, To Close 140 Stores
Englewood, CO-based sporting goods chain Sports Authority has ushered in the first major bankruptcy in the US 2016 retail sector. After news in January of the chain missing a $20 million debt coupon payment on a underlying debt reported at the time at $1 billion, today the company announced plans to shutter its 140 stores and two distribution centers, affecting 3,400 of its approximately 15,000 employees with layoffs.
A statement from the company CEO Michael E. Foss indicated that Sports Authority stores nationwide remain open and continue to operate on normal schedules. The majority of Sports Authority stores are expected to continue to operate without change or interruption during the entire Chapter 11 process
According to Moody’s, the store saw nearly $2.7 billion in revenue for the 12 months that ended May 2.
The chain was taken private almost a decade ago for a debt-included $1.3 billion.
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