11-Nov-2015 17:23
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Liquidating store

Consumer Affairs' founder and former editor, Jim Hood formerly headed Associated Press Broadcast News, directing coverage of major news events worldwide.

Sports Authority filed for bankruptcy protection in March and said then that it hoped to trim costs and keep at least some of its stores open.Landlords are also miffed, according to the Wall Street Journal, by Sports Authority's filing its bankruptcy documents one day after the March rent was due, in effect giving itself a free month.The company pays about $27 million in rent each month and landlords could be left hanging if other creditors are paid first from the proceeds of the liquidation.Consumers who are holding gift cards from Sports Authority should use them immediately.Likewise, any pending returns or exchanges should be done quickly.But yesterday, company lawyer Robert Klyman said major debtors were instead pursuing a sale.

It's possible one or more major chains will take over some or all of the stores but it's equally likely that professional liquidators will win a May 16 auction for the company's assets.

Many Sports Authority stores are already runing going-out-of-business sales, which could make the property slightly less appealing to liquidators.

Reports say vendors are reluctant to send more inventory to Sports Authority stores for fear they won't be paid.

Sports Authority credit cards are not immediately affected by the filing and all payments should be made as usual.

The apparel industry can be extremely competitive, with constant pressure to add trendy products to maintain a customer's interest.

Adding new inventory to any apparel business comes with the question of what to do with the older inventory that is taking up space.

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