Sports Authority's bankruptcy and total liquidation means more than just the end of an iconic sporting-goods dealer, Business Insider reported yesterday. Sports Authority's collapse has made retailers concerned about the way that they have been operating. "You could make the argument that given the state of retail, everyone's going to be analyzing — whether or not it's retailers or lenders — what makes the most sense and, in particular, vendors," said Mike Murray, senior managing director at Wells Fargo. The consignment business model is one area that retailers are concerned about. Sports Authority has explained in court documents that the business had $85 million worth of consigned items in stores at the beginning of its bankruptcy. Sports Authority's downfall has been a burden for top-tier brands, such as Under Armour, which UBS analysts noted had "bloated post holiday '15 inventories." Sports Authority's downfall comes at a time during which other once dominant retailers failed. It came several months after Quiksilver and American Apparel filed for chapter 11. This spring, former teen stalwarts Aeropostale and PacSun filed for bankruptcy.
