Sports Authority Headed For Closure
Sports Authority is getting prepared to close the sales at Sports Castle that is located near downtown Denver. It has planned to shut down 140 stores and the company has confirmed this on Wednesday. It is not known as to how many more stores in Colorado might be closed in future.
It is estimated that Sports Authority who is the leading sports good retailer is on the verge of bankruptcy. The company has a debt of about $643 million and they have already laid off more than 100 employees to better their balance sheet numbers.
Sports Authority has already liquidated more than 75% on the website. Employees at the Sports Caslte were seen loading the shipments to be take to the store near Park Meadows mall. The store is said to close once its lease terms comes to an end. Even in Dallas, employees were seen packing the goods into huge boxes and loading them into a truck.
Sports Authority is a private firm that is owned by Leonard Green & Partners. It was reported that the firm was trying to negotiate with the bondholders to reorganize according to the Chapter 11. Three years later, another Leonard Green & Partners group took over Sports Authority for a sum of $1.3 billion.
No one is sure about what the future will hold for Sports Authority. One has to wait and watch what happens.
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