The death of Sports Authority has left many people wondering what happened. Here’s a look at the company’s history and how it ended up in bankruptcy.
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Introduction
sports Authority was once the go-to retailer for all things sports. With more than 460 stores across the United States, the company was a one-stop shop for everything from baseball gloves to golf clubs to camping gear. But in 2016, Sports Authority filed for bankruptcy and started closing stores. By the end of 2017, all of the stores were gone.
So, what happened? Let’s take a look at the chain’s history and how it ultimately led to its downfall.
What went wrong?
Sports Authority was once the country’s preeminent sporting goods retailer. But a series of missteps led to its downfall, and the company was forced to file for bankruptcy in 2016. So, what went wrong?
Lack of focus
In an interview with The Denver Post, CEO Michael Foss said, “What we didn’t do a good job of is staying focused on our core customer, the athlete. We started straying from that.”
Foss is right. Sports Authority became much less of a sporting goods store and more of a general retailer selling things like clothes and housewares. This may have driven up sales in the short term, but it ultimately led to the company’s demise.
Athletes are a very specific type of customer with very specific needs. They are looking for gear that will help them perform at their best. They don’t want to sift through racks of clothes or housewares to find what they need. They want to go into a store and know that they will be able to find everything they need in one place.
By straying from its core customer, Sports Authority lost sight of what made it special. It became just another retailer selling just about anything and everything. This was not enough to sustain the company in the long run.
Poor customer service
It’s no secret that customer service is important to the success of any business. But in the case of Sports Authority, it seems that poor customer service may have been one of the contributing factors to the company’s demise.
A quick search of “Sports Authority customer service” turns up a number of unhappy customers who have had less than positive experiences with the company. Complaints range from long wait times on the phone, to unhelpful and rude staff, to issues with products that were never resolved.
In an age where customer service is more important than ever, it seems that Sports Authority may have dropped the ball in this area. poor customer service can lead to dissatisfaction among customers, which can in turn lead to lost business. In a competitive market like the one Sports Authority operated in, poor customer service may have been one of the factors that led to the company’s downfall.
Inadequate online presence
The internet killed Sports Authority.
Or, more accurately, the company’s failure to adapt to the way people shop online killed the once-mighty retailer.
Founded in 1987, Sports Authority was once the go-to store for all things sports. It grew to become one of the largest sporting goods retailers in the country, with more than 460 stores across 45 states. But in 2016, it filed for bankruptcy and announced it would close all of its stores.
What happened? SPORTS AUTHORITY DIDN’T HAVE AN ONLINE PRESENCE! In today’s world, that is inexcusable.
The company’s website was barely functional. It was difficult to navigate, and it didn’t offer nearly the same selection as its brick-and-mortar stores. Prices were also often higher on the website than they were in store.
Sports Authority’s inadequate online presence allowed competitors like Dick’s Sporting Goods and Amazon to steal market share. As more and more people turned to the internet to shop for sporting goods, Sports Authority was left behind.
In order to survive in today’s retail landscape, companies need to have a strong online presence. They need to offer a user-friendly website with a wide selection of products at competitive prices. Sports Authority failed to do this, and it paid the ultimate price.
The bankruptcy filing
On March 2, 2017, Sports Authority filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware, citing debts of $1.1 billion and assets of $1.6 billion. The company’s restructuring advisors announced that the company would be conductingGoing-out-of-business sales” at all of its stores.
On May 17, 2017, it was announced that Dick’s Sporting Goods would be purchasing some of Sports Authority’s assets at auction. The purchase included inventory, store fixtures, and intellectual property.
What’s next for Sports Authority?
It’s been a little over a year since Sports Authority filed for bankruptcy and closed all of its stores. The company was once one of the largest sporting goods retailers in the United States, but it struggled to keep up with online competition and changing consumer habits.
So what’s next for Sports Authority?
The brand still exists, and it is currently owned by Dick’s Sporting Goods. Dick’s has said that it has no plans to revive the Sports Authority brand, but it is possible that some of the former Sports Authority locations will be reopened as Dick’s stores.
In the meantime, many former Sports Authority employees have found new jobs at other retail companies. Some have gone to work for Dick’s, while others have landed jobs at Academy Sports + Outdoors, Walmart, and other retailers.
Conclusion
After struggling for years, Sport Authority finally filed for bankruptcy in 2016. This was partly due to competition from online retailers, but also because of poor management decisions. Unfortunately, this meant that many people lost their jobs and stores closed down.