Sports Authority, one of the country’s most recognizable sporting goods retailers, announced Wednesday that it has filed for Chapter 11 bankruptcy protection.
The company’s CEO, Michael Foss, wrote in an email to customers that Sports Authority intends to close or sell approximately 140 stores in the coming months. He called it a “necessary step” in the company’s plan to make Sports Authority an even better partner for its customers.
“Due to the changing retail environment, we have a long-term plan to streamline and strengthen our business so we can continue to make necessary investments in our operations, including upgrading our in store experience and enhancing our website,” Foss said in the email.
No stores are being shut down immediately, and Sports Authority didn’t specify exactly which stores will close in the coming months. The company also plans to honor its warranties, and it expects no changes to gift card balances or the ability to use gift cards at this time.
“In short, we are continuing to operate our stores and website, and we remain fully committed to delivering value and great brands wherever you shop at Sports Authority,” Foss wrote.
Sports Authority said it expected to have access to up to $595 million in debtor-in-possession financing during its restructuring, according to TIME.com, which added that the company listed liabilities of up to $10 billion and assets of up to $1 billion in court documents.
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