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Sports Authority Suing Consignment Vendors Early And Often

Law360, New York (April 15, 2016, 11:11 AM EDT) -- Lawsuits abound in the Sports Authority Chapter 11 bankruptcy case. Almost 170 consignment vendors have been served with adversary complaints from Sport's Authority's counsel. These adversary complaints dispute the consignment vendors' rights and instead allege that the debtor owns the inventory. This move is very atypical this early in a bankruptcy case, as most adversary proceedings are not filed until about a year or so into the case. The crux of these lawsuits against the debtor's own vendors seeks the debtor's use of more than $85 million of consigned inventory. The deadline for the vendors to respond to the complaints is May 12, 2016....

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