Sports Authority Inc. filed for bankruptcy Wednesday after failing to exploit the fitness boom that’s been a rare bright spot in retail. To reorganize, it says it will try to benefit from something else: tax law.

The company has fallen far since a $1.3 billion buyout in 2006 piled it with debt. The company said in a statement following the bankruptcy filing in Delaware that it will close as many as 140 of its 463 locations. In court papers outlining its reorganization strategy, Sports Authority said it will proceed cautiously when trying to sell assets, in order to preserve $124 million in tax reductions.

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