According to the Wall Street Journal, Sports Authority has filed for bankruptcy, with owing a combined $71 million to Nike and Under Armour.
Sports Authority is a leading sports equipment store, and has done very well over the years. They filed for chapter 11 protection bankruptcy, citing debts to Nike of $48 million, and Under Armour to $23 million. Due to the filing, Sports Authority plans to close or sell 140 of its 450 stores and will accept $595 million in bankruptcy financing from a group of investors. The bankruptcy plan was bound to happen after Sports Authority had missed a $20 million debt payment. Sports Authority has 14,500 full- and part-time employees, but has not made clear as to which stores will be shut down. This is still surprising when Sports Authority was brought 10 years ago by Leonard Green & Partners L.P. for $1.3 billion.
"This was a tough decision to make, but we believe it was a necessary step in our plan to make Sports Authority an even better partner for our customers," said CEO Michael Foss.