Sports Authority files for bankruptcy, will close 140 stores across the U.S.

PictureThe Denver-based retailer, Sports Authority, said in a statement on Wednesday that they will file for chapter 11 bankruptcy to restructure their financial and operational processes.  Chief Executive Officer Michael Foss says that over the next few months, they plan to close 140 stores nationwide.The bankruptcy filing will allow the company to break leases for stores that are losing money. The company’s filing disclosed more than $1 billion in liabilities and assets valued at less than $50,000.

​Foss wrote,
“Due to the changing retail environment, we have a long-term plan to streamline and strengthen our business so we can continue to make necessary investments in our operations, including upgrading our in store experience and enhancing our website. As part of that plan, we have identified approximately 140 stores that we intend to close or sell in the coming months. This was a tough decision to make, but we believe it was a necessary step in our plan to make Sports Authority an even better partner for our customers. The store closings will occur over the next three months.”

The news comes as no surprise to some. In January, Sports Authority missed a $20 million interest payment which led to a 30-day grace period to figure out a possible comprise with their creditors. That grace period ended February 14th.

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