Sports Authority files for Chapter 11 bankruptcy, debts exceed $1.1B

[mahatmakanejeeves]

Source: Denver Post

Company becomes "a different beast" after reorganization, but CEO says he hopes 2,400 Colorado workers will be retained

By Alicia Wallace
The Denver Post

Posted: 03/02/2016 05:34:13 AM MST

Updated: 03/02/2016 07:47:35 AM MST



(Cyrus McCrimmon, Denver Post file)

Englewood-based Sports Authority early Wednesday morning filed for Chapter 11 bankruptcy, hoping to reorganize its operations and reduce its $1.1 billion debt, according to court documents and an interview with CEO Michael Foss. ... The filing in U.S. Bankruptcy Court in Deleware was expected.

In a statement issued in conjunction with the filings — which were made under Sports Authority Holdings Inc., TSA Stores and Slap Shot Holdings Corp. — the company said it has identified two distribution centers and 140 of its 464 stores for closure in the coming months.

The company expects to let go about 3,400 of its 15,000 employees as the stores and distribution centers close, Foss said in an exclusive interview with The Denver Post. The affected workers were notified on Feb. 10.

"We wanted to give them plenty of time to find their next opportunity, whether it's in the company, or wherever else it is," Foss said. "It is hard to close a store or a distribution center, or right-size a corporate headquarters. We try to mitigate the impact on people as much as possible."
....

Alicia Wallace: 303-954-1939, [e-mail] or @aliciawallace

Read more: http://www.denverpost.com/business/ci_29585074/sports-authority-files-bankruptcy-debts-exceeding-1-1b

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Retail was grim last holiday season for bricks and mortar stores.

If I am not mistaken, the building in the photograph used to be called the Gart Sports Castle.

Sports Authority

History

Gart Sports

Gart Sports began in 1928, when Denver Post newspaper carrier Nathan Gart started the company with $50 in fishing rod samples.

In 1971, Gart Sports Company opened the "Sportscastle" superstore in Denver, Colorado at the corner of 10th Avenue and Broadway. The 1980s marked a period of substantial growth for the company through a series of acquisitions. These mergers included Hagan's Sports Ltd. (1987) and Stevens Brown of Salt Lake City (1987). In the fall of 1992, Leonard Green & Partners acquired Thrifty and became the company's largest shareholder.

Will the Sports Castle Survive After Sports Authority Store Closes?

By Michael Roberts

Thursday, February 18, 2016 | 13 days ago

In the days after your Denver Broncos won Super Bowl 50, the Sports Authority Sports Castle, at 10th and Broadway, was absolutely mobbed with fans buying keepsakes and collectibles. ... We know — because the Sports Castle is across the street from Westword's offices.

But just over a week later comes news that the store will close along with approximately 140 Sports Authority branches across the country — a move being made as the company teeters on the cusp of bankruptcy. ... Once Sports Authority moves out, what will become of the building? It's too soon to say — but potential buyers will have plenty of options, since, as 7News reports, the Sports Castle isn't a designated Denver landmark.

That's not to suggest it lacks history, as is clear from an Arts & Venues Denver account of its noteworthy past.



The Cullen-Thompson Motor Company.

Courtesy of Denver Public Library Digital Collection

The Castle was built in 1925 by architect Jules Jacques Benois Benedict, who's also responsible for the Washington Park Boating Pavilion, at the behest of none other than Walter Chrysler.

Sports Castle historic photographs

[DarthDem]

1. Sad for the Employees

Hopefully all will find work elsewhere.

Meanwhile, perhaps can Denver take this company's name off of its NFL stadium now? Looks like that naming rights deal (like most or all of them) was money that could have been better directed elsewhere.

[houston16revival]

2. Constant churn

Insiders start a company often with venture capital who make a bundle
when it goes public and sell part of it to the general public with Wall Street
investment banking and debt financing. In 10 to 15 years it goes bankrupt
and the public loses their equity, it's bought from bankruptcy by a turnaround
specialist or hedge fund/private equity firm for 10 cents on the dollar, then
either kept or resold to a public firm for a fat profit and eventually goes public again.

The cycle just BURNS capital. Don't let it be yours.

[dinkytron]

3. You just have to walk in that store to know it should be bankrupt. Cheap sneakers. Overpriced crap.

Nothing like an awesome sporting good store.

[SpankMe]

4. This kinda sucks

Our local Sports Authority is pretty good, and is pretty much the only game in town. It's big, full of stuff, and is the only place I can get all of the baseball stuff I need for my son and our little league team.

I've been to three Dicks Sporting Goods stores and it isn't as good as Sports Authority and the prices are no better. Dicks is too "clean". The stores are sparsely stocked and the selections aren't as good. It feels like the store is more aisle than shelf, and some of the shelves are empty. It feels weird shopping there - like I'm shopping at a store that closing out.

Big5 is pretty good. But, our local Big5 is about twice the size of an average 7-11. It's packed with stuff, but still doesn't have the selection of SA. And, again, the three Big5 locations within a reasonable drive from my house are very small stores.

I hope SA can restructure and survive. They all bitch about being driven out by on-line sellers. But, SA has the resources to become an online entity of their own and dominate, or at least robustly compete.

Sounds to me like they lack any visionary leadership.

[IthinkThereforeIAM]

5. I really like the Big 5 off Parker Road...

... it is the only place I shop. I used to hit Dave Cook at the mall, but it is gone, too. I always find/found great deals on items that I still have and use for hiking, hunting, fishing and sports attire/hats.