Lenders to The Sports Authority Inc. have hired advisers to protect their investments as the private equity-backed retailer prepares to restructure its debt, Bloomberg News reported yesterday. A group of senior lenders who hold some of the company’s $300 million term loan retained investment bank PJT Partners Inc. and law firm Brown Rudnick LLP as the company tries to get its $643 million of debt under control. Holders of Sports Authority’s junior-ranked debt were scheduled to meet with financial advisers yesterday to hear proposals on how they’d guide creditors through restructuring negotiations. Sports Authority, which is controlled by Leonard Green & Partners LP and has 467 stores, hired financial adviser Rothschild & Co. in an effort to help manage its debt. The sporting goods chain is dealing with shrinking profits amid intense competition, according to a July 1 report from Moody’s Investors Service.
