• America’s leading golf retailer likely to file for bankruptcy
• Golfsmith International has more than 150 shops in the USA
• “There’s just too much debt,” a source told the New York Post
According to the New York Post, Golfsmith International, which has more than 150 shops across the USA, has failed in an attempt to sell itself and looks set to become the latest casualty of the golf industry in 2016 – following on from announcements made earlier this year by Nike and adidas.
Nike shocked the world in early August by revealing it would stop its production of golf clubs, balls and bags, while adidas Group announced in May that it was selling TaylorMade, Ashworth and Adams after revenues at TaylorMade-adidas Golf decreased by 1% for the first quarter of 2016.
“There’s just too much debt,” a source told the New York Post, adding that the company would be profitable if did not have interest payments on roughly $200 million in loans.
Golfsmith merged with Canadian chain Golf Town in 2012, where it became Golfsmith International and the largest specialty golf retailer in the world. OMERS Private Equity Inc. owns both brands.
Speaking to Bloomberg back in August, when talk about bankruptcy was first rumoured, a Golfsmith spokeswoman said: “The company’s management team is focused on strengthening the company and its business operations to maintain and expand its position as a leading golf retailer.
“The company has engaged financial advisers to explore potential strategic initiatives.”
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Originally published on bunkered on September 13, 2016.