Sports Authority Gives Up Hope of Survival, Will Go to Auction

Sports Authority won't come out of bankruptcy as an independent company and instead wants to sell off all its holdings. "It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale," company attorney Robert Klyman told Judge Mary Walrath at a hearing Tuesday in U.S. Bankruptcy Court in Wilmington, Del. But Walrath, concerned that money from liquidation sales was going to pay off certain creditors and not others, threatened to push the case into Chapter 7, under which a trustee would oversee the liquidation.