The US Sports Authority business will be broken up after a buyer could not be found for the retail chain.
Last week, liquidators bought all of Sports Authority’s inventory in a bankruptcy auction, sealing the demise of the Colorado-based chain which boasted 460 stores before filing for bankruptcy on May 3. It has since closed about 140.
Rival chain Dick’s Sporting Goods says it will bid for only about 20 of the stores – substantially fewer than the 80-180 earlier projected by analysts. The leases will go to auction in June.
“There’s a small group of stores we would love to get,” Dick’s CEO Edward Stack said during an earnings call.
Closing down sales will commence at stores across the US as early as this Wednesday.
Stack said the demise of Sports Authority and another bankrupt rival Sport Chalet will remove about 20 million square feet of sports goods retailing space in the US. Sports Authority achieved sales of about US$2.5 billion creating a significant customer base for companies like Dick’s to lure.
“So we’re going to work very hard to market to them to have them come and shop with us.”
Dick’s, meanwhile, has reported first quarter sales of $1.67 billion – $100 million more than during the sale period a year earlier. It achieved a profit of $56.9 million, down on last year’s $63.35 million despite the higher volume.
Image from Wikipedia Commons: Anthony92931.
