Sports Authority Filing for Bankruptcy

Friday, February 26, 2016
Posted in category Economics

Another retail giant that has been oh-so-bloated for so long is about to go under. Sports Authority has been teetering on the edge for some time. From the article:

Sources tell Reuters the company was unable to come up with a plan, leading it to make the decision to move toward bankruptcy.

Of course there’s no plan – the company’s balance sheet is a financial holocaust and it cannot pay its debt. Sports Authority has already gone into default.┬áThe company has been erecting, for years, huge brick-and-mortar structures that carry an unsustainable fixed cost structure, and meanwhile, its balance sheet reflects poor liquidity. The retail bubble is landing on a bed of pins.

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