Sports Authority Prepares for Bankruptcy
Sports Authority Inc., Englewood, Colo., is allegedly preparing to file for bankruptcy as it faces a debt payment due within a week, according to Bloomberg.
Once the biggest sporting-goods chain in the United States, the retailer is in talks with lenders to reorganize in Chapter 11 bankruptcy proceedings, according to people close to the business.
The news comes after Sports Authority failed to make good on a $20 million interest payment last month on its $343 million in subordinated debt.
The retailer is at least $643 million in debt, and has struggled against retailers such a Dick’s Sporting Goods and others. — J.B.