Dick’s Sporting Goods Acquires Brand Name of Sports Authority in Bankruptcy Auction

by San Antonio Attorney

A sporting goods store has prevailed over the auction of Sports Authority Holdings’ brand name and other forms of intellectual property.  The total bid was approximately $15 million.

The auction commenced on Wednesday and the primary competitor defeated Sports Direct International.  Sports Direct International landed in second place in the official auction.

Dick’s Sporting Goods also won 31 store leases for approximately $8 million; this is in addition to the acquired intellectual property rights.

The auction, which was sponsored by Hilco Streambank, lasted until midnight.  All the successful bids await for the approval of bankruptcy court, which handles the Chapter 11 case of Sports Authority.

Last week, Sports Direct and Modell’s Inc, a retailer based in New York, was about to do a merger to purchase 100-200 stores.  However, the deal failed to push through before June 23, according a Wall Street Journal report.

Sports Authority will also sell the naming rights of field located in Mile High, Denver.  The field was home to the football team Denver Broncos.  The stadium rights are still available after the conclusion of the Denver Broncos.  A close source cited that the extension of deadline is under negotiation.

The official liquidation sales of Sports Authority are currently managed by Hilco and Gordon Brothers Retail Partners.  Tiger Capital Group also lent a hand for participation, since 450 stores were ready for purchase since Memorial Day weekend concluded.

Going-out-of-business sales and clearance sales are projected to be completed by the end of July.

Sport Authority filed for Chapter 11 bankruptcy protection last March.  The company has more than $1 billion in debt.

Leave a Comment

Previous post:

Next post: