Worldwide Golf Shops is exploring an offer for the U.S. business of bankrupt chain Golfsmith International Holdings Inc., as the golf retail sector grapples with the sport's waning popularity, Reuters reported yesterday. Golfsmith, the world's largest specialty golf retailer, filed for chapter 11 bankruptcy in the U.S. and for creditor protection in Canada last month, amid fierce competition from discount retailers Wal Mart Stores Inc. and Amazon.com Inc. Golfsmith's owner is OMERS Private Equity Inc, the buyout arm of one of Canada's largest pension funds. Golfsmith, which has 109 stores across the United States, filed for bankruptcy with a plan to find a buyer for its U.S. business, reorganize on a smaller scale or liquidate, according to court documents. Bids for Golfsmith's U.S. business are due on Oct. 17, and an auction is scheduled for two days later, with the goal of closing a sale before the start of the holiday season, according to court documents. Golfsmith is already shutting down some stores to save money. It is not yet clear if Worldwide Golf is eyeing the entire U.S. business of Golfsmith or individual assets. Read more.
Does bankruptcy still work for retail? Panel at today’s Views from the Bench program will explore the retail landscape. Walk-ups welcome!
