Why is Sports Authority soon headed for bankruptcy?
and Alicia Wallace
The Denver Post
The fourth-largest U.S. sporting goods chain is headed for bankruptcy, a reversal of fortune analysts blame on Sports Authority’s staggering debt and the retailer’s failure to adapt to changing consumer tastes.
The Englewood-based retailer is nearing the end of a 30-day grace period on a $21 million interest payment it skipped in January. Failure to pay by Valentine’s Day would trigger a default on its $343 million of subordinated debt.
Sports Authority leadership has already begun negotiations with lenders on a deal to reorganize through Chapter 11 bankruptcy, Bloomberg reported earlier this month. That could result in the closure of as many as 200 of its more than 450 stores nationwide.
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