Sports Authority is shutting down all of its 463 locations nationwide, including its two Hawaii Island locations among its eight stores throughout the state, as part of a liquidation process expected to span several months.
Sports Authority is shutting down all of its 463 locations nationwide, including its two Hawaii Island locations among its eight stores throughout the state, as part of a liquidation process expected to span several months.
The retailer filed for bankruptcy protection earlier this year and reported a $1.1 billion debt. The company’s initial plan was to restructure its debt and close 140 stores, which would have spared the Hawaii locations.
But attorneys for Sports Authority reported earlier this month the company was unable to bring its creditors and lenders on board with that reorganization plan.
Hilo store manager Chris Ellorin said the liquidation process could start as early as Friday and will almost certainly be underway by next week.
He added that conference calls with the corporate office indicate the company expects the liquidation process will extend through the end of August.
“The liquidation sales hearing confirmation is (today),” Ellorin said, adding that more concrete information would be disseminated upon the hearing’s conclusion. “We all followed the media and sat on conference calls. We were worried but were all hopeful (the store would remain open).”
Ellorin said he was notified May 16 that all locations would close.
The store’s 42 employees were informed that day.
“When we got official word last week, it was emotional,” Ellorin said. “It was heartbreaking.”
Ellorin, who has spent 14 years with the company and is originally from Oahu, said he wants to remain on Hawaii Island but is concerned about the availability of job opportunities in any sector, let alone retail management.
The store in Hilo’s Prince Kuhio Plaza opened in 2012.
Ellorin said Hawaii was the chain’s most successful region.
Hawaii Island locations won’t shut their doors for good until their inventory is sold off. Ellorin said a third-party liquidator will determine any mark downs, and while prices are likely to shrink, how much they’ll shrink and what savings consumers can expect remain open questions.
“It’s disappointing they’re shutting down,” said Chris James, who visited Sports Authority in the Kona Commons on Monday with his family to use a gift card before the doors close for good. “They’re putting people to work. How many more jobs does Kona lose there?”
The answer is just shy of 60, said Alvin Tayo, manager of the Kona location since 2008.
He said ramifications extend beyond unemployment to consumer options for sporting goods.
“The retail out here is nothing like on the mainland,” Tayo said. “There aren’t many options. A lot of kids play sports. My kids play sports. This is a huge hit.”
Whether another company will step in to fill the market void left by Sports Authority on Hawaii Island and throughout the state is unknown, but it does appear as though opportunity for such a development exists.
Since March, several national news outlets — including CNBC, Fox and CNN — have reported Dick’s Sporting Goods had interest in acquiring Sports Authority assets and was poised to move on significant portions of the company’s market share.
“We were stoked when they opened this store. Where else can you go to try on all these shoes?” asked customer Amy James, who said stores such as Wal-Mart and Target lack the inventory to replicate the consumer experience at an actual sporting goods store. “You can order online and then you are back and forth. Online shopping isn’t great for shoes or that kind of thing. And you want (the merchandise) now. You go shopping and you don’t want to wait three days.”
Sports Authority will accept coupons through today and gift cards through June 28, Ellorin said.
Gift card sales will cease after today.
Tribune-Herald reporter Tom Callis contributed to this report.
Email Max Dible at mdible@westhawaiitoday.com.