Sports Authority to sell all assets, including Summit County store
Summit County’s Sports Authority survived the first cut, staying open even when several stores shut nationwide. The Englewood-based retailer began closing stores in March, after filing for bankruptcy protection to reorganize more than $1 billion of debt.
However, on Tuesday, The Denver Post reported the company faces liquidation and will sell all of its holdings. A court order filed April 14 set dates and terms for an auction of “all or substantially all” of the company’s assets to the highest bidders. Even with a reduced number of locations, creditors would not allow Sports Authority to continue making large purchases needed to keep the stores stocked.
A manager could not comment on the future of Sports Authority’s Dillon location but noted the store employs between 20 and 40 people, alternating between the summer and winter seasons.
A May 3 hearing will be set to give creditors time to decide who would direct the liquidation, ensuring that funds from the liquidation will go to all creditors, The Denver Post reported. Under chapter 11, the management team would be responsible, and under chapter 7, the duty would go to a trustee.
The company reportedly filed for bankruptcy just one day after March rents were due, resulting is a loss of $27 million to landlords. Vendors were upset, too, and sued Sports Authority as the merchandise they had consigned was sold in liquidation without reimbursement. Sports Authority countersued.
Bids are due by mid-May for the store’s assets, including unexpired leases for store locations and distribution centers, including but not limited to the 140 stores that were set to close during the reorganization. A hearing for closing store leases is set for the morning of May 25, 2016.
Some of the chain’s remaining stores, numbering just over 300, may also be sold. Large sporting goods chains such as Dick’s or Academy Sports are predicted as prospective buyers though no names have been announced yet. Any locations they acquire would take on their name.
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