Sporting goods retailer Sports Authority announced today it has filed petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code.
The Englewood, Colo.-based company, known as TSA Stores Inc., said it plans to close 140 stores and two distribution centers in Denver and Chicago.
Sports Authority has 450 stores in 41 states, including four in the metro Milwaukee area, in Brookfield, Delafield, Greenfield and at Bayshore Town Center in Glendale.
The company did not say which stores it plans to close.
The Denver Post reported Sports Authority chief executive officer Michael Foss said the company will exit Texas; Virginia Beach, Va.; Puerto Rico; Kansas City; and Omaha, Neb.
The Denver Post story said the company has $1.1 billion in debt.
TSA said that in conjunction with its Chapter 11 filing, it expects to have access to $595 million in debtor-in-possession financing.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Foss said. “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…We intend to continue evaluating all options to maximize the value of the organization and position us for sustainable success in our industry.”
Melville, N.Y.-based A&G Realty Partners said it has been retained by Sports Authority to manage the sale of retail store leases and assist in reducing the company’s occupancy costs. A&G Realty said it is currently accepting bids on the leases, which range from 10,000 to 75,000 square feet and are located in many of the major retail markets in the country, including California, Florida, Puerto Rico and Texas. An auction will take place in mid-April.
“The (Sports Authority) has many attractive below market rate leases that are well positioned in key retail strip centers. By taking assignment of leases, retailers have the opportunity to enter new markets and gain access to projects they may have previously been unable to penetrate. The availability of these leases is expected to attract interest from many national and local retailers,” said Emilio Amendola, A&G co-president.
