Sports Authority going-out-of-business sales start Thursday – The Denver Post

A federal bankruptcy judge on Tuesday afternoon signed off on Sports Authority’s plan to have liquidators start going-out-of business sales at all of the Englewood-based retailer’s more than 460 stores.

The store-closing sales will start Thursday, the trio of liquidators said in a statement released following the filing of the order in the U.S. Bankruptcy Court in Delaware. The sales will end by Aug. 31.

“Words cannot adequately express the disappointment we feel with the need to shut down our stores,” Michael Foss, Sports Authority chief executive officer, said in a statement issued by the joint venture of liquidators. “We pursued both a plan of reorganization, as well as a sale of our business, but were unsuccessful in reaching an agreement that would have allowed Sports Authority to continue to operate. We sincerely thank our loyal customers for supporting our company over the years and encourage them to shop early for tremendous values on their favorite sporting good products.”

The order finalizes last week’s bid by Hilco Merchant Resources, Gordon Brothers Retail Partners and Tiger Capital Group for the bankrupt sporting goods retailer’s inventory. The liquidators agreed to pay between $368 million and $393 million plus a $1.8 million augment guarantee, court records show. (The bid contained sales guidelines that said liquidation sales could start as soon as Wednesday.)

The liquidators said the sales will include items from brands such as Nike, Under Armour, North Face and Spalding, as well as furniture and fixtures. Gift cards will be accepted through June 27, the liquidators said.

Although remaining assets — such as store leases and trademarks — are slated to be auctioned in June and determinations have yet to be made in contracts such as its naming-rights agreement at Mile High Stadium in Denver, Tuesday’s order effectively is the death knell for a retailer with nearly a century of roots in Denver, where Gart Sports opened its doors in 1928.

Gart merged with Sports Authority in 2003, and the combined company — which had picked up a couple of other regional sports chains along the way — was acquired by Leonard Green & Partners LP in a $1.3 billion leveraged buyout.

The debt load proved too much for Sports Authority, which also faced a slew of challenges including an economic downturn, the rise of online and specialty retailers and changing consumer behaviors. Management said the company’s ability to adapt was hindered by a store base consisting of a hodgepodge of too-close-together stores ranging widely in size and feel.

When it filed for Chapter 11 bankruptcy protection in March, Sports Authority started closing more than 140 of its stores and laid out a dual-path plan to try to reorganize or sell the business. But a few weeks into bankruptcy, Sports Authority gave up hopes of emerging from Chapter 11 and opted to pursue an asset auction.