Sports Authority begins liquidation sales at all of its approximately 450 stores today as the sporting goods retailer prepares to close up shop.
Originally, the industry customer had hoped to reorganize during the bankruptcy process and emerge largely intact, though with fewer stores.
When that didn’t pan out, it worked to sell the business to another sporting goods retailer. However, no bidders emerged.
In the end, a group of liquidators bought the company’s inventory during an auction this month, according to court documents.
The disappearance of a large account like Sports Authority is troubling for some industry companies, especially those in the snow industry. Sports Authority was the largest account in North America for some snow companies, which sold many millions of dollars' worth of goods to the retailer each year.
Industry companies listed as some of Sports Authority’s largest unsecured creditors included Burton, which Sports Authority owed $3.9 million; K2, $2.5 million; and Rip Curl, $2.5 million, according to court documents.
Large athletic brands were owed the most money, however. According to the court documents, Sports Authority owed Nike $47.9 million, Asics $23.3 million, and Under Armour $23.2 million.
While not the largest creditors, lots of industry brands sold to Sports Authority including Body Glove, Dakine, Hurley, Sanuk, Dragon, Stance, Dakine, Quiksilver, DC Shoes, Neff, Oakley, Vans, Reef, The North Face, Timberland, the Wheat Group, Smith, Skate One, Raj Manufacturing, Manhattan Beachwear, Spy, Saxx Underwear, Maui Jim, Leatherman Tool Group, JanSport, Wasserman Media Group and Lifeproof, according to court documents.
The liquidiation sales are expected to last until Aug. 31, according to court documents.