Sports Authority averts sudden store closures with lender agreement

Sports Authority stores will stay open a little longer.

The company reached a deal with its lenders to keep the stores open past the end of this week.

The pact will keep the four Milwaukee-area Sports Authority stores open as they continue to conduct liquidation sales.

However, the chain recently informed Wisconsin officials through a mass layoff notice that it was accelerating the closing of the Greenfield store near Southridge Mall because of a lack of interest from potential buyers and a lack of anticipated additional capital. The store will shut down sometime between August 19th and 31st, putting 46 employees out of work.

Without a deal, lenders would have been poised to shut off funds to Sports Authority on Friday, July 15th -- forcing an abrupt shutdown of its stores that are still open.

Lenders have agreed to accept $71 million out of the $240 million in bonuses for top Sports Authority executives.

About 14,000 company workers are losing their jobs in the bankruptcy.

CLICK HERE for more on this story via the Milwaukee Business Journal.