Sports Authority files for bankruptcy protection, will close 140 - KWWL - Eastern Iowa Breaking News, Weather, Closings

Sports Authority files for bankruptcy protection, will close 140 stores

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By: CHRIS ISIDORE

(CNN) - Sports Authority filed for bankruptcy early Wednesday and said it will close 140 stores, nearly a third of its total.

The bankruptcy has been looming since January, when the company disclosed that it had missed a $20 million debt payment.

The store closings will take place over the next three months. The bankruptcy filing will allow it to break leases for money-losing stores.

The company has 14,500 full- and part-time employees at its 450 stores and offices, according to the bankruptcy filing. It also disclosed more than $1 billion in liabilities and assets valued between $500,000 and $1 billion.

The company was once the largest sporting goods retailer. But it has struggled with the debt load associated with a leveraged buyout a decade ago. It has been overtaken by Dick's Sporting Goods (DKS), which has grown by providing a more high end shopping experience.

"Someone who wants to shop in a brick-and-mortar store and try on the baseball glove, or get the feel of a golf club, wants a better shopping experience," said Larry Perkins, of SierraConstellation Partners, an expert in retail reorganizations. "That's not Sports Authority any more."

Sports Authority is just the latest retail giant to fall on hard times as more and more shopping moves online.

Circuit City went bankrupt in 2008, followed by Borders in 2011. Both eventually closed. RadioShack went bankrupt a year ago, and American Apparel (APPCQ) filed in October, although both companies remain in business with fewer stores.

Read the complete story on CNN Money.

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