Golfsmith May File for Chapter 11 Bankruptcy

by San Antonio Attorney

Golfsmith International, the seller of golf equipment and clothing, is exploring the possibility of filing for bankruptcy while it finds a buyer, according to some people who have knowledge of the company’s state of affairs.

Golfsmith reportedly tapped Jefferies LLC investment bank to seek buyers for its approximately 150 stores, having been unsuccessful up to now, according to reports.  The retailer also asked Alvarez & Marsal to facilitate its reorganization, which may include a sale as part of a Chapter 11 bankruptcy plan.

The Texas-based golf superstore is the most recent sufferer of a besieged golf business, which remained the same since the U.S.  downturn in 2008.  Nike Inc. said on Aug. 3, 2016 that it would stop selling equipment for golf, and Adidas is working to offload almost all of its golf-related merchandise.

In 2012, Golfsmith merged with Golf Town and called the union the biggest specialty golf seller worldwide.  The owner of the two brands is Ontario-based OMERS Private Equity Inc.

A spokeswoman of Golfsmith said in a statement via email that the management team of the company targeting to strengthen the company and its operations to remain as a leader of golf retailers.

The spokeswoman also said that as of now, Golfsmith has liquid assets to pay its creditors on time.

Golf became very popular when Tiger Woods was dominating the sport in the 2000s, yet numerous players stopped participating in the game.  Moreover, millenials are not so much into golf due to its time requirement and slow pace.  Statistics show that in the United States the number of golf players has significantly declined within the past five years.

Filing for bankruptcy is like pushing a reset button on your finances.  If you are planning to file for bankruptcy, or just want to learn more about it, you should consult a San Antonio Lawyer who handles bankruptcy cases.

Leave a Comment

Previous post:

Next post: