Sports Authority, one of the country's largest sports retailer announced Wednesday that it intends to close 140 shops out of its 463 locations all over the United States. Two possible stores in Southern California are included in the closures, and another two distribution centers located in Chicago and Denver.

In addition, the retail sports center also filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The concerned stores will be shuttered in the next three months but the company has not yet decided as to which stores will be closed down.

The Englewood, Colorado-based sports retailer cited a "changing retail environment" which induced the company to form a long-term plan to restructure and strengthen its business operations.

These business moves will enable Sports Authority to continue putting in the required investments in its commercial operations that include enhancing its website and upgrading the company's store experience.

The store has had disappointing results since a buyout of $1.3 billion was consummated in 2006. At that time, it was competing toe-to-toe with Dick's Sporting Goods Inc. in terms of sales.

Currently, Dick's Sporting Goods Inc. is the market leader in the United States with regards to sales of sporting goods and athletic gear. On the other hand, Sports Authority has seen its capacity to expand nationwide considerably impaired.

Dick's now has hundreds of stores more than Sports, and is selling nearly twice as much as the Colorado-based sports company.

"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry," said Michael E. Foss, Sports CEO, in a statement.

"We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations," he added.