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Sources: Modell's Backs Away From Deal For Sport Authority Assets

Sources said that Modell's Sporting Goods, the "only potential bidder for Sport Authority Inc.'s assets that would have kept much of the chain alive, has backed away from the deal." This comes as the bankrupt sporting goods chain has set a deadline of today for "bids for an auction of assets and store leases that will take place on May 16." Sources indicated that Sports Authority had been in talks with Modell's to "buy some of the stores and keep them operating under the Sports Authority name after the restructuring," but the sides "couldn't agree on a price" (BLOOMBERG NEWS, 5/10).

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