Credit: Sports Authority
Sports Authority, which operates a store in Middletown, has filed for bankruptcy and owes more than $1 billion to creditors.
The news of the Chapter 11 bankruptcy filing is accompanied by an announcement that Sports Authority will be closing 140 out of its 463 stores in the next 90 days. The company will also close or sell two of its five distribution centers.
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The Wall Street Journal cited sources in a report that said the company may close all stores if a buyer isn’t found by the end of April.
The Middletown store is located in the 2300 block of Lincoln Highway and doesn’t often appear very busy. A list of stores up for sale doesn’t show the Middletown location on the 87-location list, but a full list of the 140 stores slated to close hasn’t yet been released.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Michael E. Foss, CEO of Sports Authority, said in a statement. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”
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The company said in a statement a review of their portfolio and lagging sales showed less brick and mortar stores are needed as part of its “long-term business model.”
Sports Authority has been around almost 90 years and has faced stiff competition from other retailers.
