Sports Authority Inc. is preparing to file for bankruptcy as it faces a debt payment due in 10 days, Bloomberg News reported yesterday. The retailer, once the biggest sporting-goods chain in the U.S., is in talks with lenders including TPG Capital Management LP on a deal to reorganize in chapter 11 bankruptcy proceedings. It’s also mapping out a plan to close as many as 200 of its more than 450 stores under the bankruptcy plan. Sports Authority is negotiating with creditors as the clock ticks on a $20 million interest payment that it skipped last month on its $343 million of subordinated debt. It’s been talking to holders of those bonds about accepting a loss in exchange for other securities. The company would be able to stave off a bankruptcy filing if it reaches a deal with the bondholders.
