The court authorized the going-out-of-business sale to start “on or
around” May 25 and terminate “on or around” Aug. 31, though Sports
Authority could petition to extend the sale under certain circumstances,
the court said.
The liquidation is the direct outcome of the court’s decision to
approve a contract between Sports Authority and a trio of liquidating
agents that bid together on the chance to sell “all or substantially
all” of the sporting good retailer’s assets, court records show.
Sports Authority’s initial attempt to emerge from bankruptcy intact
was quickly defeated by objections from around 100 creditors after the
retailer petitioned to reorganize under Chapter 11 in March, according
to documents filed by the retailer Tuesday.
In April and May, the Englewood-based retailer attempted to find a
buyer for the business as a going concern, but no interested buyer
stepped forward, the retailer conceded in bankruptcy filings.
Finally, “In an effort to maximize value ..., (Sports Authority) also
offered (its) inventory for sale to liquidators,” the retailer’s
lawyers told the court.
Ultimately, a liquidators’ joint venture — consisting of Gordon
Brothers Retail Partners and Tiger Capital Group, both of Boston, and
Hilco Merchant Resources of Northbrook, Illinois — won the right to
conduct the liquidation sale.
The liquidations must be conducted according to a series of
guidelines approved by the court.
Among the “Sale Guidelines” ordered
this week:
¦ “Conspicuous signs that state ‘all sales are final” and ‘as is’ must be posted in all cash register areas.”
¦ Normal business hours will be maintained unless the retailer and
the liquidator agree different hours are necessary to maximize value.
¦ Liquidators can advertise the sale as a “store closing,” “sale on
everything,” “going out of business sale” or similar phrase, but are
limited in the size and number of storefront banners it can fly.
¦ Distributing handbills about the sale is prohibited, but sign
walkers who twirl their signs “in a safe and professional manner” are
allowed.
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