The Sports Authority sporting goods chain is filing for Chapter 11 bankruptcy protection and closing about 140 stores, including its two stores in Kansas City, North, and Lenexa.
The retailer, based in Englewood, Colo., said Wednesday that the rest of its 463 stores will stay open and run on normal schedules while the company reorganizes its finances in bankruptcy.
It said the store closings could take up to three months, though leases for most of the closing stores are already being offered around. That’s the case for the 42,000-square-foot Kansas City store at 8980 N. Skyview Ave. in Tiffany Springs MarketCenter. Colliers International said the location was available for sublease and it expected to sign a new tenant soon.
The 47,000-square-foot Lenexa store is at 12014 W. 95th St.
Store managers at the two area locations, both of which opened in 2008, declined to comment.
Sports Authority, whose stores are in 41 states and Puerto Rico, also said it is closing two distribution centers in Denver and Chicago.
Sports Authority said its website would continue to function, and the chain plans to honor warranties on items bought at its stores or online.
“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” CEO Michael Foss said in a written statement.
The executive said that the company needs fewer stores as consumers are increasingly shifting to online shopping.
Foss said that The Sports Authority Inc., which is privately held, has received interest from third parties that may want to invest in or buy some or all of the business. The company plans to continue evaluating all of its options, he added.
Sports Authority said that it expects to have sufficient liquidity during the Chapter 11 process when factoring in cash from operations and anticipated access to up to $595 million in debtor-in-possession financing.
The retail industry as a whole has struggled with the consumer move to online shopping, trying to find ways to lure customers to brick-and-mortar stores instead. Macy’s has opened Macy’s Backstage to go head to head with discount retailer T.J. Maxx. J.C. Penney is using store label offerings to fight against pricing pressures from online rivals and recently launched a campaign called “Get Your Penney’s Worth,” which offers certain store label items for pennies.
The Star’s Joyce Smith contributed to this report.