Going-out-of-business sales at all 450 Sports Authority retail locations were scheduled to begin by May 26.
The sales mark the latest step in Sports Authority's bankruptcy filing. The sale was authorized May 24 in U.S. Bankruptcy Court in Wilmington, Delaware. Judge Mary Walrath approved the company proposal to have a team of liquidators start the going-out-of-business sales that will include all inventory and fixtures. The sales must be completed by Aug. 31.
The liquidators are a joint venture group made up of a trio of companies: Gordon Brothers Group, Hilco Merchant Resources and Tiger Capital Group.
On their website, Gordon Brothers also released a statement by Michael Foss, Sports Authority CEO.
"We cannot adequately express the disappointment we feel with the need to shut down our stores," he said in the statement. "We pursued both a plan of reorganization as well as a sale of our business but were unsuccessful in reaching an agreement that would have allowed Sports Authority to continue to operate."
In the statement, Foss thanked loyal customers for supporting the company over the years and encouraged them to shop early for tremendous values on sporting goods.
Sports Authority's corporate headquarters are in Englewood. Efforts to contact the company about the future of the headquarters have been unsuccessful.
At one time, Sports Authority was among Englewood's largest employers, with about 900 people in the two buildings that house the corporate headquarters. At that time, just about every space in the expansive parking lot was taken, but since the bankruptcy filing in March, many empty parking spaces can be seen.
Eric Keck, Englewood city manager, said he has received no information about the plans for the corporate headquarters and the people who work there.
"We only hear what everyone hears about Sports Authority, such as the announcement of the going-out-of-business sales at all their stores," he said. "This is a difficult situation for everyone. We know the reduction of the staff at the corporate headquarters will have a negative impact on surrounding business and on our community."
According to a bankruptcy court document, the judge's order finalized the bid by the joint venture to handle the liquidation. The bid contained sales guidelines for what is a basic agreement to guarantee Sports Authority a specific sum, and the joint venture will profit if the sale goes well.
The document said the venture will pay Sports Authority between $368 million and $393 million plus a $1.8 million augmentation fee, which is an agreement that could provide additional funds to Sports Authority, provided the going-out-of-business sales prove profitable to all parties.
Because the company reportedly was $1.1 billion in debt, Sports Authority filed for Chapter 11 protection in March. On May 3, it was announced in the bankruptcy court in Delaware that the company would not be able to reorganize but instead would pursue sale of its assets.
The company located its headquarters on the Englewood campus on Jason Street just south of Hampden Avenue about 2001. The campus includes expansive parking lots and about 200,000 square feet of space in two buildings.
from Lakewood Sentinel - Latest Stories http://lakewoodsentinel.comhttp://englewoodherald.net/stories/Sports-Authority-closing-up-shop,214225?branding=15
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