Friday, July 29, 2016

Sports Authority’s Demise Shakes Faith in Consignment Deals

Image result for sports authority store closingSports Authority Inc. limped into bankruptcy in March with a straightforward plan to survive as a smaller, more nimble purveyor of bats, balls, sneakers and sweatpants.

Job One? Close unprofitable stores and sell off their inventory.

But almost immediately a fight broke out over who owned some of that inventory: The retailer or the vendors who supplied it on consignment? Employees had to pull more than $25 million in stock from liquidation sales while the company and the suppliers bickered about how deeply to slash prices and who got the money.. . . more

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