Thursday, May 19, 2016

Sports Authority to Close all Stores: Dick's Sporting Goods Come to Hawaii! You will be the Market Leader on Landing

It seems that instead of some sort of debt work-out Sports Authority is closing everything.
Sports Authority, the once-mighty sporting goods chain that filed for bankruptcy protection in March, now plans to close all its 450 remaining stores, where going-out-of-business sales will start before Memorial Day.

A group of liquidators that offered the winning bid for the debt-ridden company’s assets at Monday’s bankruptcy auction will sell off remaining merchandise in going-out-of-business sales at stores not already in the process of closing, according to a filing in bankruptcy court in Delaware.
So that means the entire Hawaii market is open to a big box sporting goods retailer. I know many people buy things at Sports Authority because whenever I went there I noticed quite a few people even during weekdays. I know I have bought several bulky things that I would never buy online like weight lifting weights and gym bags. Quite a bit of their merchandise will probably be safe from Amazon because who is going to buy a gun safe or running shoes online?

So if Dick's sporting goods was smart they would just take over the leases at those Sports Authority's and thus take over the Hawaii market in one shot. I know Dick's are a pretty good retailer because I owned their stock a few years ago and I researched them fairly well. 

In fact they might be a good stock to get back into because they have very few competitors left and that Amazon-proof nature I talked about above. They recently guided downward because of Sports Authority cratering and offering those fire-sale prices. But that is a couple quarter overhang at best.    

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