Beleaguered retailer Sports Authority this week notified the state that it’s cutting 72 jobs and closing its massive distribution warehouse on Kalamath Street in Denver.
The Denver-based chain, which has not publicly commented on its layoffs or a reported pending bankruptcy, filed a WARN notice with the state Feb. 23.
It said it will close the 200,000-square-foot building by April 29.
The Denver Post reported this month that the company will close the Sports Castle location on Broadway. Employees at that store have told BusinessDen that they are sending all nonclearance merchandise to other locations. And locations around Denver are sending clearance items to the Sports Castle location. A liquidation sale will begin once the company files for bankruptcy, according to several clerks at two Denver locations.
Sports Authority has not returned dozens of calls seeking comment.
Dave Hagan with DGH Kalamath LLC bought the building in 2014 for $3.7 million.
Sports Authority is the only tenant in the building and has a little more than a year left on its current lease, Hagan said.
“We look at the building and see a great opportunity to do something with it, whether to release to a user like Sports Authority, but we think longer term there probably a higher and better use for the property,” Hagan said.
“We feel like it’s in the path of redevelopment and it’s already starting to happen in the neighborhood, so we feel pretty good where we are in the property ownership and the opportunities it could present.”