Golfsmith Files For Bankruptcy

annsguy

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I just saw this in Sporting Goods Business and went online to Bloomberg to view the following.

Golfsmith International Holdings Inc., the retailer of golf clothing and equipment, filed for Chapter 11 bankruptcy amid a slide in the sport’s popularity in North America.

The Austin, Texas-based company listed debt and assets of as much as $500 million each in Delaware court, and said it would try to sell part of the chain as a going concern while shutting some stores. If that fails, the company would liquidate, according to a resolution passed by Golfsmith directors and included in the bankruptcy court documents.
Managers were “directed to finalize and implement a going-concern sale and partial chain liquidation plan and, in the alternative, a full chain liquidation plan,” the resolution reads.

Golfsmith, which merged with Canada’s Golf Town in 2012 to become what it called the largest specialty golf retailer in the world, is owned by OMERS Private Equity Inc., part of the Ontario municipal employees’ pension fund.
The golf industry hasn’t recovered the popularity it enjoyed at the turn of the century, when Tiger Woods dominated the sport and attracted hordes of new fans. Millennials in particular haven’t embraced golf’s slow pace and hours-long time commitment. The number of U.S. players declined to 24.1 million last year from 25.7 million in 2011, according to the National Golf Foundation.
Nike Inc. has said it will no longer sell equipment for the sport, and Adidas AG is trying to offload most of its golf brands.
The case is: In Re: Golfsmith International Holdings Inc. No. 16-12033, U.S. Bankruptcy Court, District of Delaware (Delaware)

Before it's here, it's on the Bloomberg Terminal. LEARN MORE
 
Looking forward to the fire sale.
 
Not surprising. Their prices couldn't beat online usually, and from my experiences, not too many staff in the stores who had a ton of product knowledge. I've been in my local one plenty and never had any staff ask me if I needed help. Even went for a fitting and guy didn't really do much, looked at me swing, looked at numbers and told me standard L/L/L. So I left.

So it does not surprise me.

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Unfortunate... B&M stores are struggling to generate profits when pricing is compared to online options.
 
This has been coming for some time!
 
So I should hurry up and use my $50 gift card?
 
So I should hurry up and use my $50 gift card?

Yes... Especially if there is the potential of a complete liquidation as referenced in the filing.
 
Looking forward to the fire sale.

Just like when Sports Authority closed. They sold everything including the fixtures. I picked up some great golf club displays for a great price. My clubs look much better in them instead of being stuffed into multiple bags in the garage.
 
Edwin Watts paved the way....
 
They are going to close some underperforming stores but this isnt going to be a Sports Authority situation.
 
Dicks and worldwide golf shops(roger dunn) are the companies that have made bids for golfsmith. Wonder who this will eventually go to.
 
This is an interesting turn of events

 
hmm... I like Golfsmith stores, but think this will be a bummer.

Dave
 
This is an interesting turn of events

Wow. That's interesting news.

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Wow. That's interesting news.

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Reading the article it looks like they are going to keep some stores open & that makes sense. I'm guessing their top performing stores start open, but both Golfsmith and Golf Galaxy will be under the Dicks umbrella
 
Reading the article it looks like they are going to keep some stores open & that makes sense. I'm guessing their top performing stores start open, but both Golfsmith and Golf Galaxy will be under the Dicks umbrella

30 stores, that doesn't exactly bode very well as far as top performing. Hoping the one near me closes and becomes a PGASS.
 
30 stores, that doesn't exactly bode very well as far as top performing. Hoping the one near me closes and becomes a PGASS.

Makes me think strategic store fronts, but I agree one becoming a PGA SS close to me would be awesome
 
Makes me think strategic store fronts, but I agree one becoming a PGA SS close to me would be awesome

I would think the bigger cities or ones that have the cheapest rent already.
 
I would think the bigger cities or ones that have the cheapest rent already.

Bigger cities came to mind. We gave a "Golfsmith Extreme" close and it seems to do well. But rent can't be cheap for them given location and sq footage. Already got an email that a smaller store on the north side of town is closing.
 
Bigger cities came to mind. We gave a "Golfsmith Extreme" close and it seems to do well. But rent can't be cheap for them given location and sq footage. Already got an email that a smaller store on the north side of town is closing.

I thought about all the GSE's they have and possibly all of them closing? Really depends on what they rent is vs the profitability. IMO they're probably all on the chopping block.
 
One possibility is that Dick's keeps closes all but 30 Golfsmith locations and rebrands those as Golf Galaxy's....


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