Sports Authority Negotiating With Accessory Suppliers

In Retail News, News, What's New, Industry News by Marilise Gavenas

the sports authority

The Sports Authority may be reaching a settlement with 161 of its suppliers, according to a recent report in The Wall Street Journal.

After the struggling retail chain filed for Chapter 11 last month, consignment suppliers of items like gloves, hats, and winter accessories sought return of their goods. The retailer, which is currently liquidating 140 stores, argued that the goods were needed for its remaining stores and sued to block removal.

Now, in a negotiated settlement pending approval of Judge Mary Walrath of the U.S. Bankruptcy Court in Delaware, the retailer will be able to continue to sell the estimated $85 million in merchandise.

The Sports Authority is also awaiting Judge Walrath’s approval to access more funds in a $595 million bankruptcy loan; and, according to its bankruptcy timeline, the chain has until the end of this month to find a seller for its remaining 300-plus stores.

By contrast, Dick’s Sporting Goods, a direct competitor to The Sports Authority, opened its 647th store earlier this week, making it the largest omni-channel sporting goods retailer in the United States.

 

 

 

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