Golfsmith’s Bankruptcy Filing Affects Athletic Brands

by San Antonio Attorney

Golfsmith International Holdings Inc.  has filed for bankruptcy and inflicted more wounds to major athletic brands like Nike and Under Armour, which are still suffering from the bankruptcy of Sports Authority Inc.  not so long ago.

Under Armour, Adidas and Nike companies all have big dealings with Golfsmith, which sought for bankruptcy protection on Sept.  14.  The company has 109 locations across the United States and 55 more in Canada, making the chain the top golf seller in North America.

The bankruptcy of Golfsmith is an additional indication of golf’s flagging, according to experts.  Analysts say the number of people participating in the sport has declined since the Tiger Woods’ popularity has waned.  Moreover, the company dealt with certain problems that contributed to its financial troubles.

Under Armour is reportedly the chain’s largest supplier of clothing.  Meanwhile, Nike is a leading seller in apparel and shoes.  TaylorMade by Adidas and Adams provide clubs to the stores, aside from apparel.  The dominant equipments in Golfsmith are from Callaway Golf Co.

Golfsmith’s bankruptcy comes after failure to find a new owner, causing assumptions that the company will have to shutdown many of its locations to stay alive.

There are interested buyers for the stores in Canada, which is managed by the Golf Town.  The chain entered bankruptcy after Sports Authority decided to close for good after failing to exit from bankruptcy.

The emerging victor in all these is probably Dick’s Sporting Goods Inc.  In case Golfsmith shutdowns many stores, that rival has the biggest chance to get those patrons, according to analysts.  Moreover, analysts believe that Dick might gain from acquiring some of Golfsmith’s stores, an approach it took when Sports Authority filed for bankruptcy.

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