Sports Authority Could Go Bankrupt This Week

By Benjamin SnyderManaging Editor
Benjamin SnyderManaging Editor

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

Photograph by Bloomberg via Getty Images

Sporting goods retailer Sports Authority could go bankrupt as early as this week.

The chain of stores has plans to file for bankruptcy as long as it can cobble together the funds needed to keep going during its upcoming court proceedings, Bloomberg reported, citing people familiar with the matter.

The publication noted that Wellington Management and Blackstone Group’s GSO Capital Partners are in talks with Sports Authority to provide financing for the loan, which is known as debtor-in-possession financing.

As part of its bankruptcy procedures, Sports Authority is expected to shutter 150 stores of its over 450 locations, Bloomberg noted. The news comes as Sports Authority could sell stores to Dick’s Sporting Goods, as Fortune wrote about earlier Tuesday.

The company, which is based in Englewood, Colo., missed an interest payment on its debt earlier in the year and didn’t make the payment during the 30-day grace period. The period ended Feb. 14.

Meanwhile, Sports Authority has $643 million debt and is owned by Leonard Green & Partners LP.

Sports Authority declined to comment.

This post has been updated to reflect Sports Authority’s response.