Sports Authority reportedly gives up on reorganization and plans to liquidate

The L.A. Times reports:

Sports Authority reportedly has given up on reorganizing under bankruptcy protection and continuing its business, deciding instead to liquidate its assets.

The sporting goods chain filed for Chapter 11 bankruptcy in March with plans to close 140 of its 463 stores and to reorganize its remaining business after reaching agreement with its creditors.


But a lawyer for Sports Authority, Robert Klyman, told a judge Tuesday that the chain would look to sell its holdings, the Wall Street Journal reported.

"It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale," Klyman told Judge Mary Walrath at a hearing in U.S. Bankruptcy Court in Wilmington, Del.

More square footage on the market.