May 21, 2016 06:08 AM EDT
‘Sports Authority’ Is Set For Massive Lay-off; Closing All Stores Amid Bankruptcy, Competition Online [VIDEO]
Three months after filing a bankruptcy, "Sports Authority" is shuttering down all of its 460 stores across the United States where which almost 14,500 employees are about to lose jobs in the next few months.
According to a new court filing the bankrupt company has failed to secure a buyer three months after it filed for bankruptcy protection. "Sports Authority" failed to meet up customers' demands and made an exodus to online stores, Chicago Tribune reported.
Sports Authority fails to find buyer, it will close all stores. Going-out-of-business sales will take place soon pic.twitter.com/bWbSl77HiP— Joel Franco (@OfficialJoelF) May 18, 2016
The bankruptcy protection filed by Sports authority aims for a reconstruction of all its stores spanning across 41 US states with Puerto Rico. The CT cited, the Colorado-based retailer was once the largest retail store for sporting goods until online competition went on.
After failing to reach an agreement with its creditors and lenders, the retail giant was forced to be sold at auction. At the moment, a group of liquidation companies obtained the assets of Sports authority. Last March filing, SA said that their closures could take up to three month. While the store lease will be on sale in another time, dates for the stores closure remains unclear, CT reported.
The chain will hold a massive going-out-of-business sale in the coming week amid struggles competing with online competitors. "Sports Authority" added that it will start discounting clothing, sneakers and other sports apparel until the end of August.
In 1987, "Sports Authority" was founded in Fort Lauderdale. Later on, "Kmart" acquired the company in 1990. Then, the company was acquired by a private equity firm in 2006. Sports Authority currently bears the corporate naming rights to "Sports Authority Field at Mile High," the stadium where the Denver Broncos play.
In 2015, the retailer was accounted with $3.5 billion in revenue and employed 16,000 people, according to Forbes. A private Sports Authority representative declined to comment.
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