Sports Authority, a sports apparel retailer that operates a store in the Brick Plaza shopping center, announced Thursday that it would be liquidating its assets and closing all its stores.
The chain will shut down after failing to reach an agreement with its lenders, CNN reported. Sports Authority applied for bankruptcy protection last month, but a representative for the company told a judge today that efforts to reorganize would be abandoned since negotiations did not pan out.
According to a report in the Pasadena Star-News, Sports Authority, like many chain retailers, fell victim to “showrooming,” where customers will survey or try on merchandise at a brick-and-mortar store, then purchase it online for a cheaper price.
The CNN report said some stores could be purchased by other retailers, however it is just as likely that a liquidation company will be brought in to sell off the remaining stock. A liquidation auction is scheduled for May 16, after which the stores will begin to close.
The region’s two remaining sporting goods retailers operate properties in or near Brick. Dick’s Sporting Goods is located near the Costco shopping center and Modell’s has a location on Route 70 in the Town n’ Country shopping center at the Lakewood-Brick border.