Bankruptcy Rumor: Sports Authority Distribution Centers to File for Bankruptcy

by San Antonio Attorney

Two Sports Authority Distribution Centers located in the Metro area, are closing down, causing a multitude of employees to lose their jobs.  This news was announced when there was speculation that the company will potentially file for bankruptcy, according to CBS4.

Sports Authority pays 6 million a year to put up its name in the Mile High Stadium.  Howard Nathan said it was a payment divided into installments, which is the common condition for stadium name rights, according to the Metropolitan Football Stadium District.

The contract still has four years to go.

This speculation was further confirmed by employees at the Denver Sports Authority Distribution Center last Thursday.  Employees revealed that the center will be closed by the end of April.  Another center will be shut down in Aurora, which will lay off 60 employees.

Upper management disseminated the information this week and this has caused animosity among the workers inside the facility on Kalamath in Denver.  One employee found it hard to leave the center, after working there for more than 30 years.  Another employee said that they were pre-warned by the management to look for new jobs as the center will eventually close.

Darren Duber-Smith, a marketing professor in the Denver Metropolitan State University said that the Distribution Center has already missed one debt payment, which served as a red flag for financial trouble.

Duber-Smith added that there were dozens of competitors who also put up their name on the Kroenke Soccer Field such as Dick’s Sporting Goods Park.  Sports Authority was pressured to maintain its name due to the fear of the competitors overpowering them or one-up them in their own home market.

Dozens of sport distribution centers are also speculated to lay-off employees and file for bankruptcy.

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