Dick’s Sporting Goods spent $15 million to buy bankrupt Sports Authority’s brand name and intellectual property.
The bid at Wednesday’s auction beat out British retailer Sports Direct International’s $13 million offer, sources familiar with the matter told The Wall Street Journal.
Along with the Sports Authority name and intellectual property, Dick’s got itself 31 of the dying retailer’s store leases for $8 million, the same source said. More leases from the retailer’s 450 stores were auctioned off to other bidders.
It had looked like Modell’s and Sports Direct were going to go in with a joint bid to take as many as 200 stores, but both retailers declined to submit offers by Sports Authority’s June 23 bid deadline.
According to the Journal, Sports Authority will also sell its naming rights for what is now Sports Authority Field at Mile High, where the Denver Broncos play.
All bids are still pending approval by the Wilmington, Delaware, U.S. Bankruptcy Court, which has been handling Sports Authority’s case.
When it originally filed for Chapter 11 bankruptcy protection in March, Sports Authority CEO Michael E. Foss said the company would use the process to “streamline and strengthen its business both operationally and financially” and plans only included closures of 140 stores.
It didn’t take long for it to become clear that reorganization wasn’t in the cards for Sports Authority, and in April the retailer said it would sell of all of its holdings.
By May, three liquidators (Tiger Capital Group, Hilco Global and Gordon Brothers) owned Sports Authority’s inventory and the company closed its headquarters, cutting close to 500 jobs in the process.
Going-out-of-business sales have been on for months at stores still open and online. The Sports Authority website homepage reads: “Prices just slashed again! Everything now 30-50% off original ticketed price. Furniture fixtures and equipment for sale.”