Sports Authority Declares Bankruptcy

Sports Authority on Main Street in Bridgeport is scheduled to close down as the company has declared bankruptcy.

Sports Authority on Main Street in Bridgeport is scheduled to close down as the company has declared bankruptcy.

Arnav Srivastava ’19
EE Staff Writer

hority always has the quality equipment you need to get your game on. However, the famed sports equipment retailer had claimed bankruptcy in March. Although the company had excellent products at great prices, the company was lacking in one crucial perspective: online sales. It is now becoming a moderate trend for giant companies such as Sports Authority to suffer great loss due to their incapability in online sales. Now, one of the world’s most successful sports retailers is hurtling down towards its doom.

Although it had seemed that Sports Authority had a sturdy plan to solve the crisis, in which they would close about 140 stores and keep on functioning independently, Sports Authority’s position is only worsening. All of the investors of Sports Authority seem to dislike the company’s plan to sell some stores (earning some money) and continue operating, and refuse to fund it. Without any capital, the company is put in jeopardy and has minimal ability to exploit any of its plans.

Currently, the company is calculating the value of its assets, as if no action is taken soon, Sports Authority may end up selling itself and be completely taken over by another company. Through this method, the stores themselves may still be functional, saving many from unemployment, but will likely operate through a different name chosen by the new owner.

In a worst case scenario, all of the stores will simply shut down and become idle. Most experts predict that the majority of the chain will dissolve away soon, one way or the other.

However, Sports Authority is desperately looking for investors, as well as potential buyers of the company in whole or partially. The company is self-imposing a bid to settle the price of its assets, hoping it can beat its future expectations. The outcome of this search will determine the future of the company, including how many stores will be closed, and whether the company will still be functioning. Unfortunately, it seems that the company’s desperate search will soon be coming to an end, as the only interested investor, Modell’s Sporting Goods, has backed out of the deal.

In conclusion, it seems as though Sports Authority is in for a serious decline of stores. If Sports Authority is to have some stores remain and survive through their struggle, then stores will likely remain where Dick’s Sporting Goods, the superior competitor, does not have established markets to be able to survive from competition. This area includes the Midwest and Northwest of the United States, so Connecticut can pretty much expect to see Sports Authority stores to soon disband.

Hopefully, Sports Authority stores will miraculously make it out of their situation. Sports Authority is quite crucial to Connecticut’s economy, and having all of its stores going out business will deal a blow to the state. It will be great if the stores are purchased by new investors, as that way many people will stay be employed. However, in doing so and changing stores to a different name, customers can no longer be guaranteed of the excellent quality and service Sports Authority provides. This can even affect the equipment purchasing options for our school’s very own sports teams, as soon less retailer competition may lead to more expensive prices from competitors.

Let’s keep our fingers crossed that Sports Authority gets a handle on its struggle and keeps its name alive.

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