Golfsmith, the world's largest golf retailer, has filed for Chapter 11 bankruptcy, the company announced on Wednesday.
The move will precipitate a broader corporate restructuring that includes the selling of Canada-based business Golf Town to a group led by Fairfax Financial Holdings Limited and CI Investments.
The Austin-based retailer intends to shutter "certain underperforming stores" and sell excess inventory as well as close whatever Golf Town locations are not acquired in the sale. The reorganization is intended to make Golfsmith more attractive to potential buyers, and its debtors are currently negotiating with "one or more" undisclosed suitors. If Golfsmith fails to attract a buyer by October 31, the company could face immediate liquidation.
In a statement, Golfsmith CEO David Roussy focused on the future.
"Today represents a significant step forward for the long-term viability of the Golf Town and Golfsmith businesses," Roussy said. "We will continue in our commitment to provide our customers with the exceptional service and high-quality golf products they have come to expect from us."