FORMERLY PE OWNED
Sports Authority
Includes The Sports Authority, TSA
sporting goods · Englewood, CO
- PE Firm
- Leonard Green & Partners →
- Year Acquired
- 2006
PE borrowed $1.3 billion to buy a sporting goods chain, starved it of investment, then liquidated every store and 14,000 jobs.
What Happened
- Leonard Green & Partners took Sports Authority private in 2006 for $1.3 billion — paid for largely with debt loaded onto the company itself
- The crushing debt payments left no room for store upgrades, e-commerce investment, or competitive pricing — the chain fell behind Dick's and online retailers
- Filed for Chapter 11 in March 2016, initially planning to close 140 stores — but no buyer materialized, and the case converted to full liquidation
- All 450+ stores shut down by August 2016; Dick's Sporting Goods bought the brand name for $15 million — pennies on the dollar for what was once the #1 sporting goods chain
The Damage Done
- All 450+ stores liquidated by August 2016 — 14,000 workers lost their jobs in one of the decade's largest retail collapses
- Nike alone was owed $46 million in unpaid invoices when Sports Authority went under, illustrating how deep the financial rot ran
- Communities nationwide lost a major sporting goods destination, especially in areas without a nearby Dick's or REI
- Youth sports leagues and school programs that relied on Sports Authority sponsorships and local partnerships were left scrambling