Dick’s Sporting Goods Wins in U.S. Golfsmith Bankruptcy Auction

by San Antonio Attorney

Dick’s Sporting Goods Inc. has acquired Golfsmith International Holdings Inc.  in the United States after winning the bankruptcy auction on Oct.  21, according to reports.  Dick’s reportedly offered $70 million to buy Golfsmith.

The sports retail giant intends to continue operating about 30 Golfsmith locations and close the rest with the assistance of liquidators from Tiger Capital Group and Hilco Global.  Around 500 employees will keep their jobs.

Golfsmith merged with Canada’s Golf Town four years ago and became a major specialty golf merchant in the world.  The company operated a total of 109 stores in the U.S.  when it filed for bankruptcy on Sept.  14, and has been shutting down stores after that.

Dick’s, the biggest American sporting goods seller, also acquired Golfsmith’s inventory and intellectual property, based on reports.

The result of the bankruptcy sale is still subject to the approval of a bankruptcy judge.

Golfsmith sought for bankruptcy protection in Canada and United States because of the tough rivalry from discount stores such as Amazon.com and Walmart and also the sports’ declining popularity among young people.

Golfsmith declared up to $500 million in debts and assets in its Chapter 11 bankruptcy filing.  The Austin, Texas-based retailer blamed a forceful plan that started in 2011 to expand with bigger stores that is more costly to run just when golf was becoming less popular.

In 1967, Carl and Barbara Paul founded Golfsmith in Edison, New Jersey.  The Pauls made individually ordered clubs and opened their first store about 5 years later.  The business mainly operated as a catalog merchant until the ‘90s, as stated in the court documents.

 

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