Sports Authority Declares Bankruptcy: Latest Victim in the Economic Slowdown - from TRUNEWS

(TRUNEWS) CEO Michael Foss has announced that Sports Authority has filled for Chapter 11 protection in Delaware bankruptcy court Wednesday.

Detailed in Case 16-10527, Sports Authority has listed $0 – $50,000 in available assets, as well as $1 – $10 billion in liabilities, and has announced plans to close up to 140 of its 463 locations.

Speculation of Sports Authority’s Bankruptcy first began in January after the company missed a $20 million interest payment, prompting a 30-day grace period to negotiate with creditors which ended without resolution on February 14th.

Bloomberg has speculated that the $1.3 billion buyout in 2006 was the axe in the back of Sports Authority, a move which weighed the company down while competitor Dick’s Sporting Goods expanded its reach into the sports retail market.

What is not speculation is the growing trend in America of companies being forced to declare bankruptcy and contract retail locations.

A sign for the Sears department store is seen at Fair Oaks Mall in Fairfax, Virginia, in this file photo dated January 7, 2010. REUTERS/Larry Downing

Michael Synder of the Economic Collapse Blog detailed 12 other examples of this trend in the last year:

1) Sears lost 580 million dollars in the fourth quarter of 2015 alone, and they are scheduled to close at least 50 more “unprofitable stores” by the end of this year.
2) For decades, Kohl’s has been growing aggressively, but now it plans to shutter 18 stores in 2016.
3) Target has just finished closing 13 stores in the United States.
4) Best Buy closed 30 stores last year, and it says that more store closings are likely in the months to come.
5) Office Depot plans to close a total of 400 stores by the end of 2016.
6) Wal-Mart is closing 269 stores, including 154 inside the United States.
7) K-Mart is closing down more than two dozen stores over the next several months.
8) J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.
9) Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.
10) The Gap is in the process of closing 175 stores in North America.
11) Aeropostale is in the process of closing 84 stores all across America.
12) Finish Line has announced that 150 stores will be shutting down over the next few years.
TRUNEWS has documented before how the Baltic Dry Index is at record lows, railroad and truck traffic are drying up across the country, and consumer spending has severely contracted due to enforced governmental taxes like Obamacare.

The post Sports Authority Declares Bankruptcy: Latest Victim in the Economic Slowdown appeared first on TRUNEWS with Rick Wiles.

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