Sports Authority won't be restructuring and is instead planning to liquidate.
The Wall Street Journal reported that Robert Klyman, legal representation for the sportswear retailer, said that the company decided against attempting to reorganize itself.
"It has become apparent that the debtors will not reorganize under a plan but instead will pursue a sale," Klyman said in the U.S. Bankruptcy Court in Wilmington, Delaware, on Tuesday, according to the Journal.
The Journal reported that potential bidders are reviewing Sports Authority's assets.
The company filed for bankruptcy protection in March and had originally planned on closing or selling roughly one-third of its locations. Sports Authority was also downgraded in January after it missed a debt interest payment.
Earlier in April, Reuters reported that Academy Sports + Outdoors and Dick's Sporting Goods expressed interest in purchasing Sports Authority's assets.
Sports Authority did not immediately respond to CNBC's request for comment.