Judge refuses bonuses for executives at bankrupt Sports Authority

[NWCorona]

Source: Reuters

A U.S. bankruptcy judge refused on Tuesday to allow Sports Authority to pay up to $2.85 million in bonuses to four executives for overseeing the winding down of the national sporting goods chain.

Englewood, Colorado-based Sports Authority filed for bankruptcy in March with hopes of keeping some of its 464 stores open, but battles among lenders and suppliers eventually scuttled those plans. Its final stores closed last month.

"I think it’s just inappropriate to pay senior executives a bonus when all the employees are losing their jobs," said Judge Mary Walrath during a hearing in Wilmington, Delaware.

Sports Authority said the bonuses were essential to ensure executives squeeze the most value out of its assets by adhering to a budget and preventing waste.

Read more: http://mobile.reuters.com/article/idUSKCN10D214

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"Sports Authority said the bonuses were essential to ensure executives squeeze the most value out of its assets by adhering to a budget and preventing waste."

I'm so tired of that excuse! Like the people who ran the company into the ground will somehow miraculously maximize the return on the liquidated assets.

[Angry Dragon]

1. are they saying these execs will not do their job unless paid more??

[exboyfil]

3. Exactly

Shirking on their fiduciary duty. Not only should they not get bonuses, I would look to claw back their prior compensation for malfeasance.

[cstanleytech]

5. WTB + infinity symbol!!!!

[NWCorona]

7. I've come across this golden parachute excuse many times.

It's supposed to be an "incentive" to do an even better job than they were already doing. Or excuse B, to keep them from jumping ship to another company.

Both excuses don't pass the smell test.

[Beartracks]

20. I don't understand. If the company folded, the execs are leaving anyway...

... aren't they? What "job" is there left for them to be "incentivized" to do?

===================

[Yo_Mama_Been_Loggin]

2. I should fucking hope so

Rewarding incompetence?

[cstanleytech]

4. Actually they probably would work to maximize it for those bonuses but if

they are the same ones who ran it into the ground in the first place they don't deserve any bonus and courts should hold the executives entire pay back and if they want to get paid at all then then they better work their ass off otherwise they can say hasta la vista to their pay just like their employees that they screwed with their mismanagement.

[laserhaas]

11. Uh..er..by the way..its owned by Romney

or that is to say..owned by Bain Capital

That's owned by Mitt Romney

[cstanleytech]

17. So I should care why?

[muriel_volestrangler]

30. It looks like they sold their share in 2006

In January 2006, Sports Authority agreed to be purchased in a leveraged buyout by affiliates of Leonard Green & Partners, a private equity investment firm, in a transaction valued at $1.4 billion.[11] Shareholders approved the deal in May 2006. Upon completion of the merger, Sports Authority ceased to be a publicly listed stock. Thus, no public bonds are outstanding and Sports Authority no longer files financial statements with the SEC.

https://en.wikipedia.org/wiki/Sports_Authority

[laserhaas]

32. Also a standard Bain maneuver..like Toys R Us n eToys

Romney fears public company laws..they take it private

Which most investors never do

SEC laws also are international treaties

[laserhaas]

33. If you will take notice relation tween Green & Bain

is incestuous ( Jack Bush of Sankaty/ Bain was also at Jumbo and JoAnn..that was Bain & Leonard Green)

[LisaM]

6. So they are saying that they hired executives who won't do their jobs

Unless you somehow give them added incentive to do so?

[Eugene]

8. But, but retention bonuses are the Capitalist Way.

These people are valuable. What kind of a country do we live in
where we can reward executives for running a company into
the ground?

[wallyworld2]

9. $2.85 million

It's really not an incentive to keep the doors open

I've been through two companies going bankrupt and if it were not for the teamsters and their pension plan, I would have gotten nothing.

On the other hand the people responsible for the bankruptcies all got bonuses when we went out of business

More of this

It would only be better if employees got a chunk of that $2.85 million when the doors closed.

After all they did their jobs when owners and management could not.

[laserhaas]

12. This same pathetic judge gave everyone double pay

1000 frigging employees..double their salary..in our eToys case

So that they would all be pissed off..at me..when I let them go

[wallyworld2]

15. I don't understand

[laserhaas]

21. I ran./ owned eToys while in bankruptcy

Romney tried to acquire the assets ( finally did....by fraud)

The plan before I took control..was for BainCap/ Kay Bee to buy eToys for $5.4 million; which I stopped and compelled them to bid tens of millions.

Meanwhile my attorney/ eToys attorney (MNAT com) was also...secretly ...working for Mitt & Goldman Sachs

So they con me to hire a guy (Barry Gold) to take care of suing Sachs that was actually ( secretly) working for Romney and Michael Glazer at Stage Stores

MNAT was eToys attorney and Paul Traub was creditors attorney

Traub was working at Stage Stores for Barry Gold

Paul Traub and Barry Gold were also partners

Barry Gold and Paul Traub were also at Jumbos 1st bankruptcy.

In eToys they pretended to be opponents ( actually lied under oath {confessed})

Even with all them being part of the fraud..we still forced Bain/ KB to bid tens of millions of dollars; which (obviously) pissed off Mitt.

So ...pretending to be adversaries...MNAT asked for permission to destroy eToys Books & Records..and permission to double the salary of every employee (while in bankruptcy)

Walrath approved

One day later...with everyone complaing..( who wouldnt complain about lising double pay)..they locked me out and Barry Gold took over

Even after we found proof and forced them to confess the fraud..Judge Walrath said she didnt care

These are Romney's "retroactive" secrets he could go to jail for

[laserhaas]

10. Ha Ha...Former Chief BK Justice Mary ( friggin) Walrath

Boy oh boy...do I have bones to pick with her {dis}Honor

[MrModerate]

13. How about fiduciary responsibility . . .

which, if violated, gets you thrown in the pokey.

How about that as a motivator along with your already very high salary?

[laserhaas]

23. In Walrath's court..the law doesn't apply

We compelled vonfessions of intentionally lying under oath ...and Walrath said she didn't care.

[dembotoz]

14. would kinda hope the $$$$ would go to the creditors and suppliers that are left holding the bag

a large bk can have a ripple effect on other companies that need to make up for goods that were delivered that they will never be paid for.

not really a domino effect but yes a domino effect

small business rule number 17...never put all your eggs in one basket

[laserhaas]

24. Tell me bout it

Trusting courts to do the right thing

Is a fools folly

[Demonaut]

16. Get this!!

"The company asked to keep the identities of the executives under seal to "minimize detrimental impacts on employee morale," which prompted an outcry from some of the 14,000 former staffers. "


what complete bullshit!!!!!!!!!

[laserhaas]

25. It is standard Bain Cap. roami g manager procedure

To try to coceal...the dirty deal

Do you have a list of the names?

[Demonaut]

27. I wish I did, I worked for the company in 80's, then known as Gart Brothers (acquired by Sports

Authority)

[laserhaas]

29. Congress coined a phrase about this type rackets

They called it a "Bankruptcy Ring" (Third Cir. case In re Arkansas)..noting that...in reality..lawyers / professionals would seize bankruptcy estates as their own piggy banks at direct detriment of clients and creditors

[laserhaas]

31. We've been trying to bring Walrath's protected good ole boys

Groups..down..for a decade plus

PACER locked me out from seeing dockets

When i hired attorney to get me back in...the docket filings began to vanish ( marked "unavailable" or " not found in database&quot

[muntrv]

18. What they call "bonuses," I call skimming off the top.

[TonyPDX]

19. Bain Capital got anything to do with this? It's got their smell all over it. n/t

[laserhaas]

26. Look at my notes ..above...Bain Capital..Traub & Barry Gold

All involved in 1st Jumbo Sports Bankruptcy

Bain Cap has a rinse..lather...repeat formula of fraud

[sarcasmo]

22. Way 2 go Judge Mary Walrath .

[laserhaas]

28. Hope you are being sarcastic...sarcasmo

You wouldn't praise MFW

if you knew MFW as we know MFW