One interesting possibility in the bankruptcy auction for the stores of debt-laden retailer Sports Authority was that a partnership between Northeastern sporting-goods chain Modell’s and a United Kingdom retailer, Sports Direct, might take over between 100 and 200 stores and open some kind of joint venture. Now that the bids for store leases are in, we know that the companies didn’t do that, but competitor Dick’s Sporting Goods bid on 17 stores that Sports Authority is leaving behind.
The Modell’s-Sports Direct plan would have kept the stores operating as Sports Authority, assuming that the companies won the brand in the upcoming intellectual property auction. Restarting the brand with some of the chain’s smaller stores and without debt could have been a successful plan, but the companies decided not to go through with it.
However, a source told Reuters that Dick’s Sporting Goods, the largest chain in the industry with 600 stores, did bid on some leases. They’re reportedly interested in 17 former Sports Authority locations and submitted bids last week.
Other bidders for leases reportedly include an unnamed furniture store, and probably other retailers that could take advantage of the sometimes-cavernous big boxes that Sports Authority stores occupied.
Dick’s Sporting Goods bids on 17 Sports Authority stores -source [Reuters]
by Laura Northrup via Consumerist
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