Auburn store among 140 Sports Authority plans to close or sell
As part of its Chapter 11 bankruptcy filing announced on Wednesday, the big-box chain Sports Authority Inc. announced that it hoped to sell or close as many as 140 of its 463 locations — and a marketing document obtained by The Wall Street Journal lists an Auburn Plaza location in the former. The Auburn store reportedly opened in fall 2013.
Retail experts are saying the store closings could put additional stress on shopping centers, many of which are weathering the scaling back of major retailers like Macy’s, Sears and Kmart.
Sports Authority, which is based in Englewood, Colo., and owned by Los Angeles-based private equity firm Leonard Green & Partners, said that it lost a large portion of its market share to online retailers, “failed to keep up with consumer trends,” including the decline in popularity of golf, and was burdened with $1.1 billion in debt, according to a report by USAToday.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Sports Authority CEO Michael E. Foss said in a prepared statement. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”
Sports Authority has 463 stores in 40 states and Puerto Rico and employs 13,000. As part of its bankruptcy filing in Delaware, the Denver Post reported that Sports Authority has access to as much $595 million in debtor-in-possession financing.
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