Sports Authority To Close All Stores, Going Out Of Business Sales Start Next Week

It’s official, Sports Authority is going out of business. The sports retailer filed for chapter 11 bankruptcy three months ago, and initially reported that it would be closing 140 stores. Those plans have changed, however, following Sports Authority’s inability to adapt to the online shopping trend, and now Sports Authority is planning on closing all 460 of its locations, and the chain’s customer base could get some killer deals out of the situation.

The news that Sports Authority will be shutting down all locations for good broke this week, and has been sourced to a bankruptcy court document.

According to Sports Authority representatives, the Englewood, Colorado, company is going to start discounting merchandise as early as next week. As KKTV reports, Sports Authority customers can expect to see the first markdowns in the shoe and clothing departments. Ultimately, everything must go.

Sports Authority, once one of the nation’s leading sporting goods retailers, began to see a serious decline in sales as the online shopping trend took the nation and world by storm. Unfortunately for Sports Authority, the retailer was unable to weather the storm and equally unable to evolve its business model rapidly enough to keep up with its customers preferred shopping methods. Sports Authority is far from the only brick-and-mortar retailer to suffer as more and more people turn to the internet for their shopping needs. This year alone, both Aeropostale and Pacific Sunwear have also filed for bankruptcy. Like Sports Authority, the shopping mall favorites were unable to keep up with the online shopping trend.

Sports Authority sells virtually everything a sports enthusiast could want or need, so if you have one in your family, this could prove to be an ideal time to stock up and gear, shoes and other sports supplies. As in most going out of business sale situations, customers can expect a tiered markdown system, with the best selection (and smallest discounts) happening now and the biggest discounts (and worst selection) happening down the road.

The Sports Authority going out of business sales are expected to go on until August, or while supplies last.

According to Sports Authority, the company is planning liquidating more than excess merchandise. Sports Authority also told the presiding bankruptcy court that it’s getting out from under some of its other debt as well. The company is planning on selling its store’s leases to the highest bidders in an upcoming auction, which could be good news for big box and other retailers looking to expand in the near future.

As of March, Sports Authority employed roughly 14,500 people. Unfortunately, with all locations shutting down and the company going under, those people are going to be out of the job. Earlier in the year, Sports Authority employees were able to cling to the hope of being transferred to other locations within the company during the bankruptcy restructuring. Following last week’s announcement that all locations would be shuttering, however, those employees learned that they would soon be facing unemployment.

Sports Authority’s impending demise means more than just some short-term sales, though.

As KHON reports, the upcoming end of Sports Authority has immediate repercussions for customers who are members of the store’s loyalty program and those who have unspent Sports Authority gift cards.

The retailer announced that the Sports Authority’s “The League Member” loyalty program will be coming to an end almost immediately. As in Wednesday, May 25. At that time, all benefits (including accumulated points) will end.

If you have a Sports Authority gift card, you better use it quick. Sports Authority will stop selling gift cards on May 24 and will stop accepting them on June 28.

Sports Authority will be accepting returns until June 25, and if you want to drop off equipment for service or repair, you’re already too late: that service ended on May 21.

What do you think? Will you be hitting up the Sports Authority going out of business sales?

[Image Courtesy Of Joe Raedle/Getty Images]