Golfsmith Could File for Bankruptcy in Coming Days
Golfsmith, the world's largest golf retailer, has failed to find a buyer for itself and could file for Chapter 11 bankruptcy in the coming days, according to a New York Post report.
When reached by e-mail, a company spokesperson for Jefferies, the investment bank hired by Golfsmith to find a buyer, wouldn't comment specifically on the Golfsmith situation. But the representative did say that a public announcement regarding a transaction will be coming soon.
Given the two possible scenarios -- Chapter 11 filing or new owners -- it's possible that Golfsmith's four-year marriage with Golf Town, the Canadian-based retailer, is drawing to a close. The combined company, which is owned by private equity firm OMERS (Ontario Municipal Employees Retirement System), has more than 150 stores in the U.S. and Canada. But the company's debt structure, reported to be $200 million in loans, is limiting its chances at profitability.
However the matter resolves itself, Golfsmith is likely to shutter several under-performing stores in the coming months. But it will continue to hold a significant market share in the golf retail landscape.
When reached by GOLF.com, a Golfsmith spokesperson declined to comment.