Sports Authority in Northbrook Will Close as Company Declares Bankruptcy

NORTHBROOK, IL - The Sports Authority store at 2030 Northbrook Court is one of the chain’s 140 stores that will close nationally. The sporting goods chain filed for bankruptcy Wednesday and announced the planned closings, 11 of which are in Illinois.

Other Sports Authority locations in Illinois set to close are in Calumet City, Chicago, Geneva, Joliet, Lake Zurich, Lombard, Matteson, Orland Hills, Schaumburg and Springfield.

About two-thirds of the company’s stores will remain open, including stores nearby in Deerfield, Niles, Norridge, Vernon Hills and Wilmette.

In January, the company, owned by a Los Angeles-based private equity firm, announced it had missed a $20 million debt payment. CEO Michael Foss sent an email to customers Wednesday to explain the process.

“Due to the changing retail environment, we have a long-term plan to streamline and strengthen our business so we can continue to make necessary investments in our operations, including upgrading our in store experience and enhancing our website,” he said.

Outside of stores closing, customers shouldn’t be affected by the Chapter 11 bankruptcy process. Foss outlined the following in the email:

• • We do not expect there to be any impact on gift card balances or your ability to use gift cards at our stores or online at this time.
  • In addition, there should be no changes to our return/exchange policies at our go-forward stores or our customer loyalty program, The League.
  • If you have a warranty on a product you bought at Sports Authority, it is still in effect for the same period of time.
  • Finally, this should have no impact on the way you use your Sports Authority credit card or pay your bill.

The list comes from bankruptcy filing documents.

The 140 stores targeted for closure is nearly one-third of the company’s total of 450 stores, reports CNN Money, and the stores will be closed over the next three months.

If the company is granted approval from a bankruptcy judge, liquidation sales could begin as soon as Friday, reports USA Today. Sports Authority has 14,500 full- and part-time employees with more than $1 billion in liabilities and assets between $500,000 and $1 billion.