Sports Authority is closing its Rochester location as well as 139 other stores as part of filing for Chapter 11 bankruptcy.
Rochester employees began telling customers last week that the 33,000-square-foot store at 80 25th St. SE would be closing soon. On Wednesday, the Englewood, Colo.-based company filed for bankruptcy.
As part of that filing, it submitted a list of 140 stores that it will be closing or selling within the next three months. The sporting goods retailer has 463 stores in 41 states and Puerto Rico.
Rochester's Sports Authority has been open in the Broadway Commons commercial center since 2001.
"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry," CEO Michael Foss said in a written statement. The executive said that it needs fewer stores, as consumers are increasingly shifting to online shopping.
Sports Authority stores will remain open and run on normal schedules during the Chapter 11 process. The company's website will continue to function, and the chain plans to honor warranties on items purchased at its stores or online.
In a letter to customers posted on the company's website, Foss said that Sports Authority's long-term plan includes upgrading stores and improving its website.
Foss said that The Sports Authority Inc., which is privately-held, has received interest from third parties that may want to invest in or buy some or all of the business. The company plans to continue evaluating all of its options, he added.
Sports Authority said that it expects to have sufficient liquidity during the Chapter 11 process when factoring in cash from operations and anticipated access to up to $595 million in debtor-in-possession financing.
In 2014, Sports Authority ranked fourth with $3.4 billion in revenue among U.S. sporting goods chains. Dick's is the leader with with 603 stores nationwide, including one in Rochester, and $6.5 billion in revenue. Academy Sports ranked second and Bass Pro Shop came in third.
Sports Authority has 470 stores, according to Statista. According to a Moody's research note, Sports Authority reported more than $2.6 billion in revenue for the 12-month period that ended in October.
The Broadway Commons center, which also features Kohl's, changed hands in January, when Austin, Texas-based EREP Broadway Commons bought the 131,931-square-foot retail complex for $14.5 million. They bought it from Inland Private Capital Program, of Oak Brook, Ill.
The 15-year-old shopping center was appraised at $15 million, according to state documents. Inland originally acquired the property in 2002 for $16 million. Olmsted County estimated its 2016 market value at $11.23 million.
It originally was built by Wisconsin-based Continental Properties in 2001.