CNN reports that Sports Authority plans to "conduct going-out-of-business sales at all of its locations that weren't already slated to close," and will shut down what used to be the nation's largest sporting goods chain, yet another victim of e-commerce competitors.
The Wall Street Journal goes on to say that "a consortium of liquidators that includes Tiger Capital Group, Hilco Global and Gordon Brothers prevailed in an auction for Sports Authority Holdings Inc.’s assets ... The winning group agreed to pay 101% of the cost of the retailer’s inventory, plus a $1.8 million augment guarantee."
According to the story, "The winning bidders topped a rival offer from a second group of liquidators that included Yellen Partners, SB Capital Group and 360 Merchant Solutions."
Retailers such as Dick's Sporting Goods, Modell's, and Bob’s Discount Furniture are said to be bidding for various packages of stores, though the story notes that at this point those bids seem to be smaller than originally anticipated. But the reality seems to be it is just a matter of time before Sports Authority will be just a memory.
One unanticipated controversy resulting from Sports Authority's sales has been the naming rights for the home of the Denver Broncos - known as Sports Authority Field at Mile High. The bankrupt retailer reportedly is trying to sell those naming rights to another entity, but the Broncos say that it cannot - and that Sports Authority still in on the hook for a $1 million payment due two weeks ago.
The Wall Street Journal goes on to say that "a consortium of liquidators that includes Tiger Capital Group, Hilco Global and Gordon Brothers prevailed in an auction for Sports Authority Holdings Inc.’s assets ... The winning group agreed to pay 101% of the cost of the retailer’s inventory, plus a $1.8 million augment guarantee."
According to the story, "The winning bidders topped a rival offer from a second group of liquidators that included Yellen Partners, SB Capital Group and 360 Merchant Solutions."
Retailers such as Dick's Sporting Goods, Modell's, and Bob’s Discount Furniture are said to be bidding for various packages of stores, though the story notes that at this point those bids seem to be smaller than originally anticipated. But the reality seems to be it is just a matter of time before Sports Authority will be just a memory.
One unanticipated controversy resulting from Sports Authority's sales has been the naming rights for the home of the Denver Broncos - known as Sports Authority Field at Mile High. The bankrupt retailer reportedly is trying to sell those naming rights to another entity, but the Broncos say that it cannot - and that Sports Authority still in on the hook for a $1 million payment due two weeks ago.
- KC's View:
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A few things here...
First, I'm wondering what the over-under is before some analyst suggests that Amazon ought to buy all the stores and turn them into Amazon warehouse stores. It won't happen, but somebody is going to suggest it ... ignoring the fact that a disruptive and innovative company like Amazon probably wouldn't be interested in the tainted assets of a failing bricks-and-mortar retailer.
Second, my daughter and I went into a Sports Authority the other day, and were a little surprised by how little merchandise actually was on sale considering that the company is in such trouble. Maybe that'll change soon, but it was jarring.
I'm guessing that the Broncos likely will have to kiss that million bucks goodbye. Can't get blood from a stone.
Finally, Sports Authority has to be seen by other retailers as an object lesson in how not to compete in the new economy - that it squandered whatever advantages it had and was unable to maintain the kind of relevance that would have allowed it to survive.
