This would be easier for someone to figure out if you copy and paste part of the file here. Perhaps
head yourfile > sample
Then post sample here.
In the meantime, I created a file called test and it looks like the following:
gunter@anduin $ cat test
Steve eagrtaerg erage rghegegretg
Ralph rstgwrtgwrhtrwhtrh whgrthgwr
This can be sorted using the following line:
cat test | sed 's/^$/^/' | tr '\n' '|' | tr '^' '\n' | sed 's/^|//' | sed '/^$/d' | sort | tr '|' '\n'
This may not work for you. It depends on the data in the file, hence the need for a sample.