No Bids for Sports Authority Chain
June 24 2016 - 4:10PM
Dow Jones News
The deadline for bids on Sports Authority has passed without an
offer from rival Modell's Sporting Goods and British retailer
Sports Direct International, people familiar with the matter said
Friday.
There will be an auction for the leases and other remaining
assets of the failed retailer, but there's little to no hope of a
deal that could save a significant piece of the Sports Authority
chain, which filed for bankruptcy protection in March.
At one point, Modell's and Sports Direct were in talks about a
bid that could have saved 100 to 200 Sports Authority stores and
the jobs of thousands of employees, these people said.
That proposal shrunk over the past week, the people said, and
when bids were due on Thursday, there was no bid from Modell's and
Sports Direct.
So while either of the big sporting goods sellers could still
make a bid on Sports Authority's intellectual property, including
its online selling apparatus, the string of stores that stretched
across the U.S. will not survive the bankruptcy.
A spokesman for Sports Direct, Britain's largest seller of
sports gear, could not immediately be reached Friday for comment. A
Modell's spokesman could not be reached for comment. A spokeswoman
for Sports Authority did not respond to a request to comment on the
state of bids for the fading company.
Going-out-of-business sales are under way at some 450 stores,
conducted by liquidators Hilco Merchant Resources LLC, Gordon
Brothers Retail Partners LLC and Tiger Capital Group LLC. Sports
Authority's trying to pay off more than $1 billion in debt in
chapter 11.
Write to Peg Brickley at peg.brickley@wsj.com and Lillian Rizzo
at Lillian.Rizzo@wsj.com
(END) Dow Jones Newswires
June 24, 2016 15:55 ET (19:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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