Sports Authority Gives Up Reorganization Plan; Will Hold Auction for the Company
Financial troubles pushed Sport Chalet, the fifty seven year old, La Cañada Flintridge based chain to shutter forty seven of its of stores Southern & Northern California, Arizona, Nevada, and Utah, the company announced this month.
More recently, Sports Authority headquartered in Englewood, Colorado said this week; it has given up its plans for reorganization. It filed for bankruptcy protection in March this year. The company operates 460 or more stores in forty five of the U. S. states and Puerto Rico. The company said it will hold an auction for the company and is likely to sell off in parts.
Earlier when last month Sports Authority had filed for bankruptcy, the company said it will shutter or sell around 140 of its 463 stores in the U. S.
However, as these sporting goods chains go through a hard time, it might prove to be advantageous for the other retailers in the same industry as completion will be lowered.
The room in the market is getting smaller as online retailers, mass-merchant discounters and high end brands make competition tougher in the budding sporting goods industry.
Diana Smith, senior research analyst for retail and apparel at Mintel Group Ltd, a research firm, said "There are more choices for the consumer now," "There is not enough room for everyone."
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