Sports Authority, a national retailer of sporting goods, has declared its intentions to file for bankruptcy. The bankruptcy could happen as early as March, which would mean the closing of some of the retailer’s 450 stores across the United States.
Sports Authority Declares Bankruptcy
The Englewood, Colorado-based retailer failed to pay a $20 million coupon payment on Jan. 15. That failure immediately triggered a 30-day grace period during which the company is expected to work out a compromise with creditors.
It appears Sports Authority has also struggled to make payments to suppliers of golf clubs, sneakers, and other items of apparel that are sold the stores. In fact, some suppliers have been asking for cash upfront out of fear that they will not receive their money back from the retailer. It seems the retailer is yet another brick-and-mortar store that is unable to compete with online retail stores such as Amazon.com
According to insiders, the retailer is trying to work out a deal with its creditors to receive a loan that will not only get the company through the filing, but also line up liquidators for the stores it plans to close, roughly 150 to 200 stores across the nation.
Taking Advantage of Bankruptcy
It’s not uncommon for retailers to take advantage of the bankruptcy option, as it allows them to shed costly leases that are paid to house under-performing stores. The sale of these stores also helps a company recruit money for un-paid debts. When sold out of bankruptcy, the sale of stores can prove to be more costly and time consuming.
Working with a Bankruptcy Attorney
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix chapter 7 bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
668 N. 44th St., Ste 320, Phoenix, AZ 85008