Sports Authority, what was once the largest sporting goods chains in the country and whose name adorns the home of the AFC Champion Denver Broncos, is preparing to file for Chapter 11 bankruptcy, according to Bloomberg.
The chain is planning on closing 200 of its 450 stores around the country according to people with knowledge of the situation. The company has $643 million in debt, and has been struggling in face of competition from traditional rivals such as Dick’s, Lululemon, and Athleta, but also from online retailers like Amazon as well.
Sports Authority is negotiating with creditors as the clock ticks on a $20 million interest payment that it skipped last month on its $343 million of subordinated debt. It’s been talking to holders of those bonds about accepting a loss in exchange for other securities, said the people. The company would be able to stave off a bankruptcy filing if it reaches a deal with the bondholders.
Sports Authority was purchased by private equity firm Leonard Green & Partners LP in 2006 for a whopping $1.3 billion.
There’s no word yet on what will happen to Sports Authority’s sponsorship of the new Mile High Stadium in Denver, but if you are of an auspicious bend, this isn’t a great omen for the Broncos on Super Sunday, is it?
Oddly enough, Sports Authority rival Dick’s owns the naming rights to Dick’s Sporting Goods Park, home of MLS’s Colorado Rapids, in Commerce City, Colorado, a northern suburb of Denver.
