When Sports Authority Closes, These Retailers Win
It’s a zero-sum game for bricks-and-mortar sporting goods retailers, so the demise of Sport Chalet and now Sports Authority could be a win for the few traditional players that still remain. This month, Sport Chalet, a 57-year-old chain based in La Cañada Flintridge, said it was closing all 47 of its stores after years of financial troubles. And this week Sports Authority, which filed for bankruptcy protection in March, said it will ditch its reorganization plan and instead hold an auction for the company, potentially selling it off in pieces. The eventual buyer or buyers, however, might not want to keep stores open and could opt to liquidate the assets; when Sports Authority filed for bankruptcy, it had 463 stores nationwide and said it would close or sell about 140. It’s the latest shake-up in a rapidly evolving sporting goods industry that is fighting off competition from mass-merchant discounters, online retailers and specialty high-end brands. Read more at Los Angeles Times.
