Sports Authority has filed for Chapter 11 bankruptcy. According to NPR.org, http://www.npr.org/sections/thetwo-way/2016/03/02/468869118/sports-authority-files-for-chapter-11-bankruptcy-protection the sporting goods retailer was carrying a heavy debt load and needed to restructure. In its restructuring, Sports Authority plans to access nearly $600 million in debtor-in-possession financing and close or sell approximately 140 stores and two distribution centers. This includes stores in Cherry Hill, New Jersey, East Brunswick NJ and Piscataway NJ as well as Easton Pennsylvania and Whitehall PA. The company operates more than 460 locations. Chapter 11 is often used as a way for companies to get out of bad leases while retaining the good ones.
The Colorado-based retailer decided to seek bankruptcy protection after a review of its finances, “in light of the increasing amount of shopping that is occurring online,” the company said in the statement.
