Sporting goods retailer Sports Authority Inc. intends to file for bankruptcy as early as next month, an action that would expedite the closing of some of its 450 stores across the United States, Reuters reported yesterday. Sports Authority missed a $20 million coupon payment on Jan. 15, triggering a 30-day grace period to work out a compromise with creditors. Moody's Investors Service downgraded the retailer's credit ratings yesterday, and said that it views the missed interest payment as a limited default. The grace period expired on Feb. 14. The Englewood, Colo.-based company's bankruptcy plans underscore the challenges the fragmented sporting goods industry faces as it competes with discounter Wal-Mart Stores Inc. and online retailer Amazon.com Inc. Ahead of the bankruptcy filing, Sports Authority is trying to work out a deal with creditors for a loan to get the company through bankruptcy, and line up liquidators for the 150 to 200 stores it plans to close.
