Sports Authority

The Sports Authority was established in 1987, opening its first store in Fort Lauderdale, Florida. The founding executives included Jack A. Smith, Roy M. Cohen, Richard Lynch, and Arnold Sedel. The concept was a large-format store offering a wide variety of sporting goods. Just three years later, in 1990, the still small chain was acquired by Kmart, which provided the financial backing for a major expansion. By 1994, the company had grown to 100 stores and was spun off from Kmart in an initial public offering. A significant event in the company's history was the 2003 merger with Gart Sports, which at the time created the largest full-line sporting goods retailer in the United States. The combined entity retained the Sports Authority name. In 2006, the company was taken private through a leveraged buyout by private equity firm Leonard Green & Partners for approximately $1.4 billion. This leveraged buyout saddled the company with significant debt, which hampered its ability to invest in stores and e-commerce. Facing intense competition from other big-box retailers and online sellers, Sports Authority's sales declined. On March 2, 2016, the company filed for Chapter 11 bankruptcy, listing over $1 billion in debt. After failing to find a buyer, the company liquidated all of its stores, and in June 2016, Dick's Sporting Goods acquired its brand name and intellectual property.