Sports Authority Plans to Pay Top Execs $2.85M in Bankruptcy Bonuses
File this one under the bizarre files. Sports Authority wants to pay its top executives millions of dollars in bonuses while the retailer is going out of business. Once an operator of 460 athletic gear outlets, Sports Authority filed for bankruptcy protection and began going-out-of-business sales in an effort to pay its debts. As the liquidation entered its final weeks, Sports Authority unveiled plans for bonuses to four top executives, people the company doesn’t want to name.
Total Retail's Take: It looks like this may just be a pipe dream for Sports Authority execs. The retailer's creditors and the Justice Department have challenged the fading retailer’s plans to pay top executives as much as $2.85 million in bankruptcy bonuses. Yesterday, Trustee Andrew Vara, a Justice Department bankruptcy watchdog, and lawyers for the official committee of unsecured creditors protested the bonuses and the secrecy surrounding the rewards to top executives.