The situation at Sports Authority is looking increasingly tenuous, according to recent media reports.
As of about a month ago, Sports Authority stopped paying its bills. The sports retailer did not make a $20 million debt payment, and it is seemingly increasingly likely that a bankruptcy filing is soon to follow.
Sports Authority reports that its negotiations with its creditors are ongoing — and has made no official announcement about its future plans. However, if the retailer does not make the payment by Sunday night, it will be in default on all of its loans, according to Standard and Poors.
“We do not expect a payment to be made during this time frame,” said an S&P note downgrading the company.
Moody’s also expects the company to default.