Hawaii stores not on initial sale list after Sports Authority files for bankruptcy
STAR-ADVERTISER / JAN. 2009
The Sports Authority store at the Ward Gateway Center on Ward Avenue. The retailer said today that it plans to close or sell about 140 stores and two distribution centers, in Denver and Chicago.
NEW YORK » Sports Authority is filing for Chapter 11 bankruptcy protection.
The retailer said today that it plans to close or sell about 140 stores and two distribution centers, in Denver and Chicago. The Englewood, Colorado, company has 463 stores in 41 states and Puerto Rico.
The company did not release the locations of the 140 stores it will be closing. However, The Wall Street Journal listed 87 store leases that are up for sale. That list did not include any stores in Hawaii. Sports Authority has eight stores in Hawaii, including four on Oahu, two on the Big Island and one each on Maui and Kauai.
In January, Windward Mall in Kaneohe announced that the Sports Authority there would be expanding in size by 46 percent.
The store closings are expected to take up to three months.
Other than the 140 stores slated for closing, Sports Authority stores will remain open and run on normal schedules during the Chapter 11 process, the company said. The company’s website will continue to function, and the chain plans to honor warranties on items purchased at its stores or online.
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“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” CEO Michael Foss said in a written statement. The executive said that it needs fewer stores as consumers are increasingly shifting to online shopping.
The retail industry as a whole has struggled with the consumer move to online shopping, trying to find ways to lure customers to brick-and-mortar stores instead.
In a letter to customers posted on the company’s website, Foss said that Sports Authority’s long-term plan includes upgrading stores and improving its website.
Foss said that The Sports Authority Inc., which is privately-held, has received interest from third parties that may want to invest in or buy some or all of the business. The company plans to continue evaluating all of its options, he added.
Sports Authority said that it expects to have sufficient liquidity during the Chapter 11 process when factoring in cash from operations and anticipated access to up to $595 million in debtor-in-possession financing.
Sports Authority made its Chapter 11 filing in the United States Bankruptcy Court for the District of Delaware.
20 responses to “Hawaii stores not on initial sale list after Sports Authority files for bankruptcy”
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CHAPTER 11 is fun and rewarding; because you get to make all kinds of side deals and screw your creditors and all corporate-officers get to pay themselves additional consulting fee’s, etc…
Isn’t Chapter 11 bankruptcy what Trump used to close 4 of his businesses. I read online it was not Trump but his corporation that file for bankruptcy, but that is just the same, just like how Caldwell and others constantly try to create new “semi-autonomous” agencies regarding the train to nowhere, construction development, housing, etc. which are nothing more than ‘cover’ for elected officials.
their prices are insane, no wonder
Even with their regular stream of coupons, Walmart and Amazon are still consistently cheaper.
No kidding their prices are insane.
Amen to that, I’ve been running for 40+ years and stopped buying my shoes from them 20 years ago.
Arakawa’s was the best for sporting goods. Miss them…
TJ Maxx will be ideal for that space.
Or a Home Depot combined with a Zippy’s. No mo Zippy’s at Alamoana Shopping Center.
Having a store on Ward Ave. is ridiculous anyway since we have to fight the traffic and potholes, just to get there.
Ward Avenue is one of the worst roads in Honolulu. Mayor are you listening?
agree…what a crowded, chaotic mess
Sewage line work on Ward and Kapiolani is the WORST and creates gridlock traffic and all hours of the day and night on Ward Ave. Parking is very limited when dealing with other stores like Ross and Oceanic cable both next door. Add the future train to nowhere construction in that area and the store is doomed for failure.
Their prices are too high
Way too high!
Many consumers use on-line shopping, out-of-state to avoid the local sale taxes. Since Amazon has offices in California they must collect sales taxes on all sales with local addresses only recently. If this trend continues it could affect some on-line sales. However, since enforcement is not effective and collecting and paying is voluntary on the part of the consumer it may not affect on-line shopping. Technically all out of state purchases are taxable and provide for the taxpayer to pay the tax by way of his annual income tax return. There is in line on the California income tax return for out-of-state taxes due on all out-of-state purchases. Doubt whether if many tax payers will voluntarily pay the tax?
It was always just a matter of when.
If the Waikele store is a reflection of their “culture,” then I am not surprised they are facing this financial dilemma. And I too miss Arakawa’s in Waipahu. On-line shopping is taking over the retail business, but I prefer to put my hands on the product before buying it. My brother-in-law goes to the store to get a hands-on assessment, then goes no-line to purchase the product. He does save a lot of money.
Shame. We need to buy more stuff from them. Good friendly staff and lots of goodies to buy. Keep the Ward SA and close the rest.
There goes the Sports Authority on Ward, not selling enough gold and diamonds to all the rich expected in Kakaako.