By Thomas J. Ryan
Dick’s Sporting Goods will expand much more heavily into California, including its first store in Los Angeles, as part of the purchase of 31 Sports Authority leases, according to an updated bankruptcy court filing.
Dick’s Sporting Goods also picked up several leases in Florida and will be opening its first stores in New York City, Seattle and Phoenix as a result of last week’s bankruptcy auction, according to the filing.
The filing also showed that although Dick’s Sporting Goods won the rights to Sports Authority’s intellectual property, Canadian Tire, the parent of Sport Chek, Leftlane Sports, and the parent of Swiftwick socks all made bids for some of Sports Authority’s private label brands.
As reported, Dick’s Sporting Goods won 31 Sports Authority leases for $8 million at the auction. The auction, held June 29, went on well past midnight.
Of the 31 leases, 14 are located in California. These include stores in Burbank, Canoga Park, Chula Vista, Elk Grove, Emeryville, Encinitas, Fresno, Goleta, Los Angeles, Milpitas, Roseville, San Diego, San Jose, and Sunnyvale.
Other leases acquired in the western half of the U.S. include single leases in Phoenix, AZ; Lakewood, CO; Glendale, CO; Bellingham, WA; and Seattle, WA.
In Florida, six leases were picked up, including two in Miami and single locations in Sunrise, Aventura, Jensen Beach and Sarasota. Two leases in Atlanta, GA and one in El Paso, TX were attained.
In the northeast, two spots were picked up in New York, including what will become Dick’s Sporting Good’s first store in Manhattan at 51st Street and 3rd Avenue as well as Sports Authority’s Forest Hills lease. A lease in Norwalk, CT was also snapped up.
No other sporting goods chain bid on leases although Modell’s and Academy Sports & Outdoors had shown interest in acquiring locations. Sports Direct and Modell’s Sporting Goods were working on a deal to acquire between 100 to 200 stores but failed to deliver a bid.
Among other retailers, TJX Cos. picked up stores in San Diego, CA and Sand City, CA while Target picked up leases in San Francisco, CA and East Palo Alto, CA. City Furniture acquired three leases in Florida in Hialeah, Miami and Vero Beach. American Signature, the furniture store, picked up leases in Alpharetta, GA and Rockville, MD. Those picking up single locations included Best Buy (Fort Lauderdale, FL); Orchard Supply Company (Deerfield Beach, FL); Burlington Coat Factory (Buford, GA) and Bob’s Discount Furniture (Chicago, IL).
Non-retail entities, primarily landlords, acquired eight additional leases in Miami, FL; St. Louis, MO; Bellevue, WA; Auburn Hills, MI; Brookfield, WI; Kailua-Kona, HI, and two in Irvine, CA.
Meanwhile, Dick’s Sporting Goods also won the rights to Sports Authority’s brand name, e-commerce domain, a loyalty program with 28.5 million members and a list consisting of 114 million customer files with a $15 million bid. The bid beat out a $13 million offer from Sports Direct International, the U.K. sporting goods chain.
Dick’s Sporting Goods also secured Sports Authority’s wide range of proprietary brands including Tommy Armour and RAM Golf (golf), Alpine Design (outdoor), Aspire and Bloom (yoga), BodyFit (fitness app), Classic Sport (athletic), Oxide (surf & swim), Slalom (snow sports), and Trayl (bike).
The updated filing showed the “next highest bidder” for key brands after Dick’s Sporting Goods. Canadian Tire was the “next highest bidder” for Oxide, Bloom and Slalom. BSY Company bid for Sports Authority’s golf brands. Leftlane Sports, which last September acquired the outdoor daily deal site, The Clymb, made a bid for Alpine Design. Sports Direct also made a separate bid for BodyFit.
Elicit Brands, the maker of Swiftwick socks, made a bid for Aspire. EastPoint Sports, the maker of billiards, darts, table tennis, foosball tables and other home sports games, made a bid for the Classic Sport trademark. Dick’s Sporting Goods could look to sell many of its acquired brands it doesn’t plan to use to those showing interest in each name.
Sports Authority filed for Chapter 11 bankruptcy in March, planning to close about one-fourth of its 463 stores. Failing to reorganize, however, Sports Authority chose in early May to liquidate instead. Going-out-of-business sales at its remaining 320 stores have been taking place since Memorial Day and are scheduled to be completed by the end of July.
Photo courtesy Dick’s Sporting Goods