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According to Business Insider, Englewood, Colorado-based sporting goods retailer Sports Authority is quietly preparing to file for Chapter 11 bankruptcy.
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Introduction
Sports Authority is an American sporting goods retailer headquartered in Englewood, Colorado. The company filed for Chapter 11 bankruptcy on March 2, 2016.
History
Since 2003, Sports Authority has been a subsidiary of Kmart. It was formerly a public company traded on the New York Stock Exchange under the ticker symbol “TEAM.” It was founded in 1987 by Dick’s Sporting Goods as a way to enter the then-fragmented sporting goods industry. The first store opened in Fort Lauderdale, Florida.
Ownership
The sports retailer Sports Authority was founded in 1987 and was owned by Kmart until it was spun off as a separate company in 1990. It then went public in 1992. In 2006, a private equity firm called Leonard Green & Partners acquired a majority stake in the company, and in 2016, Dick’s Sporting Goods acquired most of Sports Authority’s assets after the retailer filed for bankruptcy.
Management
Sports Authority is currently owned by a group of private equity firms. The current management team is led by CEO Michael McCarthy.
Financials
Sports Authority was a U.S.-based sporting goods retailer that filed for Chapter 11 bankruptcy in March 2016. The company was owned by several private equity firms, including Leonard Green & Partners, Ares Management and Lehman Brothers Holdings Inc.
At the time of its bankruptcy filing, Sports Authority operated over 460 stores in 45 states and Puerto Rico. The company employed approximately 18,000 people. In addition to its retail operations, Sports Authority operated an e-commerce site and a nationwide catalog business.
Sports Authority was founded in 1987 as a division of Kmart. The company became a publicly traded company in 1992 and was acquired by Leon Black’s Apollo Global Management in 2006 for $1.3 billion.
Brands
Brands
Sports Authority is an American sporting goods retailer. The company was founded in 1987 and is headquartered in Englewood, Colorado. It is a subsidiary of Dick’s Sporting Goods.
Locations
Sports Authority was an American sporting goods retailer, headquartered in Englewood, Colorado. The company operated 15 stores across the country and employed approximately 7,000 people.
In 2016, Sports Authority filed for Chapter 11 bankruptcy and announced that it would be selling all of its assets. The company was subsequently acquired by Dick’s Sporting Goods.
Controversies
Since 2001, Sports Authority has been a subsidiary of Kmart. In 2005, Simon Property Group acquired Sports Authority’s real estate portfolio in a $ Francis Malofiy, a lawyer who unsuccessfully sued Led Zeppelin for copyright infringement over their song “Stairway to Heaven”, is representing the injured family.
Bankruptcy
On March 2, 2016, Englewood, Colorado-based sporting goods retailer Sports Authority filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The company announced that it would be closing or selling all of its 450 stores in the United States.
Conclusion
Sports Authority is a privately held company owned by several investment firms. Dragoneer Investment Group is the largest shareholder, with a 38% stake in the company. Other major shareholders include Leon Black’s Apollo Global Management (26%), Kohlberg Kravis Roberts (12%), and Guggenheim Partners (8%).
