Modell’s Sporting Goods and Sports Direct International PLC of the United Kingdom are weighing an 11th-hour bid for up to 200 of Sport Authorities stores leases, the Wall Street Journal reported Monday.
The newspaper report identified the two retailers as the “bulk buyers” who have expressed interest in acquiring 100 to 200 of the Sports Authority’s store leases, according to a declaration filed in Sports Authority’s bankruptcy case June 17. The bulk buyers have “a desire to hire a substantial number of employees, which could number in the thousands if a transaction is ultimately consummated,” according to a declaration made by Rothschild Inc. Managing Director Bernard Douton filed June 17 in Sport Authority’s bankruptcy proceeding.
Douton filed the declaration Friday in a bid to block an order approving the sale of a lease in Honolulu that the bulk buyers are interested in buying. The deadline for submitting bids for Sport Authority stores, which are now liquidating their inventory via going-out-of-business sales, is Thursday.
“It is my view that the Honolulu Lease is a fundamental asset for the Bulk Buyer, and absent its inclusion in the potential bid package, the Bulk Buyer would not be interested in operating in Hawaii,” Douton declares.
“Furthermore, it is my view that in the event the Motion to Compel is granted, there is a significant risk that the Bulk Buyer will significantly reduce its proposed purchase price and limit the number of stores it seeks to acquire, thereby adversely affecting all interested parties, including a significant number of employees.”