Sports Authority may be going bankrupt as early as March.
The sports retailer could see many of its 450 stores across the U.S. Closed by that time, according to a Reuters report that cites people familiar with the matter.
The news comes after Sports Authority missed a $20 million payment on Jan. 15, according to the publication. That led to a 30-day grace period to figure out a compromise with its creditors. But the grace period ended on Feb. 14.
“Moody’s Investors Service downgraded the retailer’s credit ratings Tuesday, and said that it views the missed interest payment as a limited default,” Reuters reports. “”The Englewood, Colorado-based company’s bankruptcy plans underscore the challenges the fragmented sporting goods industry faces as it competes with discounter Wal-Mart Stores Inc and online retailer Amazon.com Inc.”
The retailer, which is owned by the private equity firm Leonard Green & Partners LP, is said to have an estimated $643 million in debt, according to Consumerist, and it has been in talks with lenders to reorganize the way it operates in its bankruptcy proceedings.
In January, Reuters also reported that the company has been struggling to pay golf club suppliers, as well as those for sneakers and other sporting apparel.
Coins2Day has reached out to Sports Authority for comment. We will update this story once we hear back.
