Well, who cares if the debt is 1.1 billion if interest rates are zero, in effect, that debt costs you nothing? The reason is that there is no way they can buy anything upon which they can make a profit and work their way out. They played the game of borrow-the-most mal-credit and steamroll over anyone who did not borrow enough. The online micro-component of sales of sporting goods has nothing to do with it.
Sports Authority was $35 a share in 2002, hundreds of millions in mal-tallies. its ownership resided in pensions, investors, etc. Now it is all gone. This is one way to balance the books. A billion in losses on the liability side, nothing gone on the asset side, for the hegemon. At teh same time, for about 75 years REI (Recreational Equipment, Inc) has had a "stock price" of about 5 cents a share, as a co-op. It continues to be rock solid.
Who is going to fire up a production line to serve Sports Authority when it is clear that it cannot pay for what they buy. No one.
For the small entrepreneur, there are two vacuums hear, the customers this big business will no longer serve, plus the widening excess product capacity of manufacturers.
Step in with your own sporting goods, and sell to stores like REI, or open a retail store and sell new and used products side by side.
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