From SportsOneSource:
Sports Authority set the timetable for its going-out-of-business sales at its remaining stores as well as for the sale of leases and its intellectual property.
As reported, a group of liquidators on May 16 won the right to conduct going-out-of-business sales at the bankruptcy auction for the assets of Sports Authority. The winning trio was made of Tiger Capital Group, Hilco Global and Gordon Brothers.
Tiger Capital and Gordon Brothers were already retained earlier in the case to handle ongoing liquidation sales at 140 stores Sports Authority had initially decided to close. It owns a total of 463 stores.
The winning bid amounted to 101 percent of the cost of Sports Authority’s inventory, plus a $1.8 million augment guarantee. The funds raised are only expected to be able to repay Sports Authority’s two top lenders. These cover an asset-backed loan worth $345 million when Sports Authority filed bankruptcy in early March as well as a separate $95 million secured loan.
According to court documents, the closing sales will commence on or about May 25 and will terminate on or about August 31, subject to Sports Authority’s rights to seek extension.
Meanwhile, an auction for the retailer’s remaining store leases will be held on June 29. Bids are due by June 23.
The sale objection deadline was set for July 8 while the sale hearing date is set for July 15.
The Wall Street Journal reported that in total, about 80 store leases received bids at the auction. Dick’s SG, Modell’s, Bob’s Discount Furniture LLC and Orchard Brands Corp. are among those seeking small sets of locations. On Tuesday, Dick’s SG increased the number of stores on which it would bid to about 30 locations, sources told the Journal.
Sports Authority Inc.’s name, and its naming rights for the Denver Broncos stadium went unsold at the auction Monday and will also be available at the second auction for remaining assets. Bloomberg said the Sports Authority name and all of its other intellectual property may be assumed by secured lenders who won’t be cashed out by the inventory liquidation. Those lenders, owed $277 million, include Blackstone Group’s GSO Capital Partners, Wellington Management and Columbia Management Investment Advisers.
The Denver Broncos team is contesting the transfer or sale of those stadium-naming rights and sponsorship without its consent.
Other assets for sale could be its various private labels: Tommy Armour (golf), RAM Golf (golf), Alpine Design (outdoor), Aspire (yoga), Bloom (yoga), Classic Sport (athletic), Oxide (surf & swim), Slalom (snow sports) and Trayl (bike).
Sports Authority has also accumulated shopper data from its customer loyalty program, which was launched in 2012 and currently boasts 28.8 million members. Approximately 20 percent of the Sports Authority’s customers drive 62 percent of its sales, the company noted in court documents.
Bye Felicia