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Sports Authority has filed for Chapter 11 bankruptcy, seeking to restructure its debt and close a number of stores in an attempt to regain its footing financially.
The sporting goods retailer is heavily in debt.
As part of its restructuring, Sports Authority plans to access nearly $600 million in debtor-in-possession financing and close or sell about 140 stores and two distribution centers. The company operates over 460 locations.
The company said in a press release that “all Sports Authority stores nationwide remain open and continue to operate with normal hours. Customers can also continue to shop online as they have in the past.”
The Colorado-based retailer decided to seek bankruptcy protection after a review of its finances, “in light of the growing number of online purchases,” the company said in the statement.
One of Sports Authority’s main competitors, sporting goods retailer City Sports, filed for bankruptcy in October.
“The retail industry as a whole has struggled with consumers’ shift to shopping online, trying to find ways to lure customers to physical stores instead,” notes the Associated Press. .
“Macy’s Inc. opened Macy’s Backstage to compete against discount retailer TJ Maxx,” the AP added. “And JC Penney Co. is using store brand deals to combat price pressures from online rivals and recently launched a new campaign called ‘Get Your Penney’s Worth’, which offers select store brand items for a few pennies.”