Sports Authority Files for Chapter 11 Bankruptcy: What Does It Mean?
Their name adorns Mile High Stadium - the home of the Super Bowl winning Denver Broncos, but Sports Authority is not winning. They’ve announced that they will be filing for Chapter 11 bankruptcy. What does that mean for the Colorado-based company, and Mile High?
Did you know they were once a part of Kmart? I didn’t. Sports Authority. Authorities on running a business? Maybe not so much. They owe Nike almost $48 million. They owe Under Armour about $23 million. Those are just two of the many problems dogging them. They owe a lot of money and haven’t been able to keep up on the payments on their debt. They’re filing for Chapter 11 bankruptcy. With that, they are looking at either restructuring their debt, or they could end up selling everything off to a competitor or liquidator.
Will this mean that it won’t be called ‘Sports Authority Field at Mile High’ anymore? That’s hard to say right now. Many companies have gone through Chapter 11 and survived, like Shlotzky’s. However, folks are being advised to use any Sports Authority gift cards as soon as they can, because if the company does indeed go under, those cards will probably be worth zilch.
[Source: USA Today]