Major Sporting Goods Retailer to File for Bankruptcy

Sports Authority has announced to the media that it intends on filing for bankruptcy at some point in the next month. When this happens, 450 retail outlets will close, leading to the loss of hundreds of jobs. The company allegedly missed a $20 million payment, which has triggered a ‘grace period’ in which negotiations with creditors can take place. There is also talk of the company struggling to make payments to their suppliers, which has led to many demanding cash up front.

Sports Authority Says: “No Comment”

The company has refused to acknowledge press reports, but it seems likely that Sports Authority will have to cooperate with a court appointed equity receiver such as FedReceiver. They will work with the company to preserve and maintain assets controlled by the company, although it is possible that Sports Direct will sell off many of the stores earmarked for closure once bankruptcy has been filed.

Challenging Times for U.S. Retailers

The impending bankruptcy of one of the U.S.’s major sportswear retailers is a symptom of the challenges faced by the sporting goods industry as a whole. Online retailers and discounters such as Wal-Mart are continuing to grab an ever-larger share of the marketplace, and with customers keen to pick up a bargain, traditional retailers can’t compete with rock bottom prices.

An Ailing U.S. Economy

Some would argue that the failure of a major retailer such as Sports Authority to compete with online retailers and discount stores is a symptom of our ailing economy. Ordinary people can’t afford to buy everyday sporting goods. Instead, they are forced to shop in discount stores or go online for bargains when they need a new pair of sneakers for their son or daughter.

The fact that millions of hardworking Americans can’t even afford to buy a generic pair of sneakers for their kids is yet another nail in the Obama coffin. Now, with Obama on his way out, his legacy of poor economic growth and wage suppression has managed to inspire the nation to vote for one of the most divisive candidates in living memory: Donald Trump.

The Rise and Rise of Donald Trump

Trump may be a misogynistic, bombastic individual, best known for his hate-fueled diatribes against Hispanics, Muslims, transgender and anyone else who arouses his wrath, but his unabashed lack of political correctness continues to be very appealing to marginalized American voters.

Ordinary people are fed up of seeing their wage packets stagnate, public schools deteriorate, jobs disappear and the economy sinks into a quagmire. They have no faith in the current political system, so who can blame them for voting in their thousands for Trump.

He may not be everyone’s cup of tea, but Donald Trump draws the media coverage and the crowds as he sweeps through the American states on his way to the White House. Whether or not he ends up being the next American President remains to be seen, but whatever happens, his particular brand of confidence is certainly inspirational.