Sources: Sports Authority Considers Selling Stores To Dick's Sporting Goods

Sports Authority, which is reportedly preparing to file for bankruptcy, has "discussed selling stores and intellectual property to rival chain Dick's Sporting Goods" and other parties, according to sources cited by Lauren Coleman-Lochner of BLOOMBERG NEWS. A source said that the Dick's transaction is "one of several options being considered." It is also "not clear how many stores might be involved in a potential deal, which would take effect after a Chapter 11 filing." The Colorado-based chain is "heading towards default after years of losing ground to competitors." In addition, Sports Authority "missed a Jan. 15 interest payment on some of its debt and failed to make the payment during a 30-day grace period." Acquiring Sports Authority's stores and branding "would give Dick's the option of continuing to operate the locations or shutting them down, reducing competition in the sporting-goods business" (BLOOMBERG NEWS, 2/29).