Deals
Sports Authority May Barely Cover Bankruptcy Cost With Sale
- Offers, merchandise may only cover $100 million in claims
- Company gets letters of intent ahead of auction next month
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Sports Authority Inc. may be worth so little that it can barely cover the cost of its bankruptcy.
If potential buyers follow through on their “letters-of-intent,” and the company liquidates its inventory, Sports Authority will raise enough cash to cover the administrative costs of the bankruptcy, company financial adviser Steve Coulombe, with FTI Consulting Inc., told a judge overseeing the case.