Sports Authority

Not to be confused with Sports Authority of India.
TSA Stores Inc.
Private
Industry Retail
Founded 1928 (1928) (as Gart Sports)
1987 (1987) (as Sports Authority)
Fort Lauderdale, Florida, U.S.
Headquarters 1050 West Hampden Avenue, Englewood, Colorado 80110
Number of locations
 450+
Key people
 Michael Foss, CEO
Thomas Hendrickson, CFO
Products Apparel, sports equipment, footwear, exercise equipment
Owner Leonard Green & Partners
Number of employees
 14,250 (2011) [1]
Website http://www.sportsauthority.com/

Sports Authority, Inc. (still known as The Sports Authority in some locations) is an American sports retailer. It is headquartered in Englewood, Colorado,[2] and operated more than 460 stores in 45 U.S. states and Puerto Rico under the Sports Authority name. On May 3, 2016 Sports Authority announced it was auctioning off its assets, and contrary to earlier press reports, selling its assets rather than liquidating and closing all of its stores.[3]

The company's website is on the GSI Commerce platform and supports the retail stores as well as other multi-channel programs. In addition, a joint venture with ÆON Co., Ltd. operates "Sports Authority" stores in Japan under a licensing agreement.

Sports Authority, Liberty Tree Mall, Danvers, Massachusetts

History

Gart Sports

Gart Sports began in 1928, when Denver Post newspaper carrier Nathan Gart started the company with $50 in fishing rod samples.

In 1971, Gart Sports Company opened the "Sportscastle" superstore in Denver, Colorado at the corner of 10th Avenue and Broadway. The 1980s marked a period of substantial growth for the company through a series of acquisitions. These mergers included Hagan's Sports Ltd. (1987) and Stevens Brown of Salt Lake City (1987). In the fall of 1992, Leonard Green & Partners acquired Thrifty and became the company's largest shareholder.

Sportmart

At the same time that Gart Sports Company opened the Sportscastle, the Hochberg family and the Cantor family opened their first Sportmart in Niles, Illinois. The company grew to 60 stores in nine states. Gart Sports and Sportmart merged in 1998. Sportmart briefly operated in Canada in the 1990s before closing down their operations after two years.

Oshman's

Oshman's Sporting Goods was founded in Houston, Texas in 1919 by Jake Oshman. By 1965, Oshman's had become the largest sporting goods chain in Texas, operating 43 Oshman's SuperSports USA stores and 15 traditional stores; the company merged with Gart Sports in 2001.

Sports Authority

The Sports Authority, Inc. was founded in Lakes Mall in Lauderdale Lakes, Florida by a syndicate of venture capital groups and several key founding executives. Jack A. Smith, formerly COO of Herman's World of Sports, CEO; Roy M. Cohen, Senior Vice President and General Merchandise Manager; Richard Lynch, Senior Vice President and CFO and Arnold Sedel, Vice President of Stores Operations were the founding executives. The venture capital syndicate was led by William Blair Venture Partners and included First Chicago Venture Partners, Bain Capital, Phillips-Smith Venture Partners, Marquette Venture Partners, and Bessemer Securities.

The Sports Authority, Inc. opened its first store in November 1987 in Fort Lauderdale, Florida. In 1990 Kmart acquired the company.[4] Five years later, The Sports Authority had expanded to 136 stores in 26 states, and was spun off from parent Kmart.

Its headquarters were in Lauderdale Lakes,[5][6] near Fort Lauderdale.[7]

Gart Sports merge with Sports Authority

Gart Sports, which also operated Oshman's and Sportmart, completed a "merger of equals" with Sports Authority on August 4, 2003. At the time of its merger with Gart Sports Company, The Sports Authority was the largest full-line sporting goods retailer in the United States, and had 205 stores in 33 states. The combined company took the Sports Authority name. With the merger, each share of Sports Authority was exchanged with 0.37 shares of Gart Sports which gave investors in each about 50% of the new merchant. The new company is based in Englewood, Colorado, which was the home of Gart Sports.

As of May 2006, the remaining stores that were not operating under the Sports Authority name were re-branded to the Sports Authority name. There are no longer any stores operating under the name of Gart Sports, Sportmart or Oshman's.

Copeland's Sports

In August 2006, Copeland's Sports, headquartered in San Luis Obispo, California filed for Chapter 11 bankruptcy and on November 17, 2006, Sports Authority, through a wholly owned subsidiary, assumed the leasehold interests in seven former Copeland's Sports retail store locations.

2006 leveraged buyout by Leonard Green & Partners

In January 2006, Sports Authority agreed to be purchased in a leveraged buyout by affiliates of Leonard Green & Partners, a private equity investment firm, in a transaction valued at $1.4 billion.[8] Shareholders approved the deal in May 2006. Upon completion of the merger, Sports Authority ceased to be a publicly listed stock. The subordinated financing for the deal was a private mezzanine loan from TCW/Crescent Mezzanine LLC. Thus, no public bonds are outstanding and Sports Authority no longer files financial statements with the SEC.

S.A. Elite

Sports Authority launched new store brand "S.A. Elite" in mid-2010, based on consumer research and testing. These stores are smaller than typical Sports Authority outlets and carry high-end sports apparel and accessories.[9][10]

Brands

Sports Authority sells different brands of sporting goods from many different vendors. The company also sells products under its own private labels, including Alpine Design (seasonal clothing and outdoor goods), Sims (seasonal clothing and snowboards), Aspire (women's sportswear), SA Gear (men's sportswear and fitness equipment), Tommy Armour and Ram (Golf), Parkside (outdoor games and trampolines), and Bodyfit by Sports Authority (fitness accessories). Many of these products are made by other manufacturers and branded with the Sports Authority private labels.

Sports Authority Field at Mile High

Sports Authority currently owns the corporate naming rights to Sports Authority Field at Mile High, a stadium in Denver, Colorado, which is the home of the Denver Broncos and was previously known as Invesco Field at Mile High.

Bankruptcy

On February 4, 2016, it was widely reported that Sports Authority is set to declare for Chapter 11 bankruptcy, due to debt issues that need to be resolved.[11] Later that month, The Dallas Morning News reported that the company planned to close all 25 of its stores in Texas. The report did not specify a date for the closures.[12] On March 2, 2016, Sports Authority filed for Chapter 11 bankruptcy.[13] After considering restructuring, Sports Authority announced that on April 26, they will sell all of their assets, including all of the remaining store locations.[14] Earlier in April, Reuters reported that Academy Sports + Outdoors and Dick's Sporting Goods had expressed interest in purchasing Sports Authority's assets. On May 3, 2016, the company notified the US Bankruptcy Court that will not reorganize their debt but will auction their assets. Contrary to media reports, the company has announced that it will not be liquidating its assets, but will be auctioning off its stores and operations, with the intended goal of keeping all of its stores open. [15]

Competition

Map of Sports Authority stores prior to the company's Chapter 11 bankruptcy filing.

Sports Authority's major competitor stores include:

References

  1. ↑ "#127 Sports Authority". Forbes.com. Retrieved 2016-04-28.
  2. ↑ "Sportsauthority.com Terms and Conditions of Use." Sports Authority. Retrieved on September 15, 2011. "1050 West Hampden Avenue Englewood, CO 80110"
  3. ↑ "Sports Authority Anticipates Buyer for ‘Major Portions’ of Stores". Wall Street Journal.
  4. ↑ "About Us" at the Wayback Machine (archived October 6, 2001). Sports Authority. October 6, 2001. Retrieved on September 15, 2011.
  5. ↑ "Lauderdale Lakes city, Florida." U.S. Census Bureau. Retrieved on September 15, 2011.
  6. ↑ "Contact Us" at the Wayback Machine (archived November 1, 2001). Sports Authority. Retrieved on September 15, 2011. "Corporate Office THE SPORTS AUTHORITY, INC. Customer Service 3383 North State Road 4 Ft. Lauderdale, FL 33319"
  7. ↑ Steinhauer, Jennifer. "Sporting Goods Retailers Start to Consider New Lineups." The New York Times. June 12, 1997. 1. Retrieved on September 15, 2011.
  8. ↑ "Schedule 14A". Sec.gov. Retrieved 2016-04-28.
  9. ↑ Harden, Mark (May 12, 2010). "Sports Authority launching new store brand". Denver Business Journal. Retrieved July 26, 2012.
  10. ↑ Sharrow, Ryan (January 31, 2012). "Sports Authority's S.A. Elite to open first East Coast store". Denver Business Journal. Retrieved July 26, 2012. S.A. Elite was launched in summer 2010 by Englewood-based Sports Authority.
  11. ↑ "Sports Authority to file for bankruptcy: Report". CNBC. Retrieved 2016-02-05.
  12. ↑ "Sports Authority closing all 25 Texas stores, report says". Fort Worth Star-Telegram. February 17, 2016. Retrieved February 17, 2016.
  13. ↑ "Sports Authority Chapter 11 Petition" (PDF). PacerMonitor. PacerMonitor. Retrieved 2 May 2016.
  14. ↑ "Sports Authority Abandons Hope of Reorganizing and Opts for Liquidation Report". The Wall Street Journal. Retrieved 2016-04-26. (Subscription required.)
  15. ↑ "Sports Authority Anticipates Buyer for ‘Major Portions’ of Stores". Wall Street Journal.

External links

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