Sports Authority Goes Out of Business with a Massive Sale

by San Antonio Attorney

Sports Authority is set to shut down its stores and will commence their going-out-of-business sale within this week.

Sporting Authority, who has 463 stores nationwide, is considered as one of the latest casualty in the sporting goods entrepreneurship.  A lot of sporting goods retailers has gone bankrupt due to an increase of online stores, which has easier marketing and access to customers.

The final sales will start on May 27 and will be expected to finish by the end of August, according to court documents.

Three months ago, Sports Authority filed for bankruptcy protection and was planning to only sell a portion of its stores in order to maintain their operations.  However, this move is also too risky, as it will cause all the stores to close.  Another sporting goods store, Sport Chalet, met the same fate as Sports Authority, who closed 50 branches of its stores last April.  They halted their online transactions as well.

Based in Los Angeles and owned by Leonard Green & Partners, a private equity firm, suffered problems of massive debt and did not win the public appeal of going with the consumer trends.

The increasing number of online stores, with the convenience of mobile internet access, whether they sell non-sports accessories, caused a negative impact on the business.  Sports Authority has acknowledged that this was the main cause of the demise of their business.

According to the data from the National Sporting Goods Association, athletic and sport equipment sales grew to 15.8% in 2014, a higher percentage as compared to 11.8% in 2010.

Katie Nemec, official spokeswoman of the National Sporting Goods Association, said that it is not only the sporting goods stores that are suffering tremendously.  She added that every retail industry will have its own set of problems.

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