Sports Authority plans to file for bankruptcy

BLOOMBERG: The sporting goods retailer said it will file for bankruptcy this week if it can finalize loans to stay in operation long enough to make it to court.

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The retailer is sorting out details on the loan, known as debtor-in-possession financing, said the people, who asked not to be identified because the talks are private. Lenders such as Wellington Management and Blackstone Group’s credit unit GSO Capital Partners are considering providing the financing, two of the people said. They are two of the holders of Sports Authority’s $300 million term debt maturing November 2017.

Sports Authority plans to close about 150 stores as part of its bankruptcy plan, according to one of the people. It’s also in discussions about potentially selling stores to Dick’s Sporting Goods Inc. and Modell’s Sporting Goods, people with knowledge of the talks said this week.

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