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THE SPORTS AUTHORITY MAKES OFFER FOR RIVAL SPORTSTOWN
Published May 30, 1995
The Sports Authority has reached a deal to buy out Atlanta- based SportsTown, Inc., "its biggest competitor in metro Atlanta," according to Matt Kempner of the ATLANTA CONSTITUTION. The agreement needs to be approved by a majority of SportsTown's 250 creditors and U.S. Bankruptcy Court, "which has been overseeing the retailer's reorganization since February." The deal could "also be overridden by sweeter bids that may be offered by other retailers eyeing SportsTown's inventory and store leases." The Sports Authority Chair Jack Smith said if the buyout goes through, all 23 SportsTown stores would be "closed quickly; at least 16 would reopen under the TSA name by the end of the year." Smith said the buyout "strengthens us in a very important market like Atlanta and puts us in Texas" (ATLANTA CONSTITUTION, 5/27). The deal would also provide The Sports Authority with a presence in OK. The Fort Lauderdale-based company operates 110 stores in 22 states. SportsTown is in TX, OK, GA, NC and SC (MIAMI HERALD, 5/27).