Sports Authority, once the largest sporting goods chain in the country, is planning to close all 25 of its stores in Texas, including nine in North Texas, according to a report in the Dallas Morning News.
The Texas closings could be one of the first big steps toward bankruptcy for Sports Authority. Bloomberg News reported last week that the retailer was in talks with lenders, including TPG Capital Management of Fort Worth, on a deal to reorganize in Chapter 11. TPG provided Sports Authority with $70 million of a $95 million asset-backed loan late last year that enabled it to operate through the holiday season, the Bloomberg report says.
Employees in Texas were told of the closings last week, according to the DMN, but they weren’t told when the stores would close. Sports Authority has stores in Mansfield, Denton and Fort Worth, among its nine DFW area locations. It has 450 stores nationwide, second only two Dick’s Sporting Goods.