Dive Brief:

• In U.S. Bankruptcy Court in Delaware Tuesday, Sports Authority attorney Robert Klyman contradicted earlier reports that the embattled retailer was settling for liquidation, saying that interest among potential buyers is “high” and that all or major parts of its operations would likely be saved, according to news reports. 

• Although there’s no lead bidder, rival sports gear chains Dick’s Sporting Goods, Academy Sports, and Modell’s last month all expressed interest in the retailer’s assets.

• Sports Authority lenders also agreed Tuesday to new terms mandated by U.S. Bankruptcy Judge Mary Walrath that would award the retailer’s landlords at least some of their still-unpaid March rent payments, according to the Wall Street Journal.

Dive Insight:

Sports Authority said last month that it will put its operations up for sale, without any intent to reorganize under Chapter 11 bankruptcy protection. Although attorney Klyman reportedly insisted in court that "liquidation is not in our vocabulary,” it may need to be added, considering Sports Authority's immense debt load and so far minimal prospects for a sale.

Sports Authority insists that interest in its operations remains high, but it hasn’t attracted the early “stalking horse” bid that in bankruptcy cases helps ensure that bids have a floor, much less a lead bidder. Still, the retailer does have some time; an auction is scheduled for May 16. Another auction on that same day for 140 Sports Authority leases that will be liquidated has two interested parties, according to the Chicago Tribune. 

Although Sports Authority went into its bankruptcy process expecting to reorganize, experts say battles with suppliers likely doomed the company. Sports Authority sued its vendors to be able to keep selling goods on consignment, while suppliers feared that the retailer would be able to get out of paying them once it was through the bankruptcy process. Meanwhile, lenders were hesitant to extend much credit for Sports Authority to keep its shelves stocked.

The Denver Post reported that Sports Authority landlords also felt robbed of $27 million when the company filed for bankruptcy a day after rents were due.

Details of Sports Authority's struggles emerged earlier this year. News of missing payments to suppliers and a failure to make a $20 million interest payment soon followed, culminating in store closings and employee layoffs. Sports Authority's immense debt exacerbated its failures to weather market fluctuations and to compete online with the likes of Amazon, rivals such as Dick's and general merchandisers like Target.