Golfsmith Might File for Bankruptcy

[nevets88]

Keep in mind, this is the NY Post, so grain of salt.

Quote

Golfsmith International, America’s largest specialty golf retailer, struggling under a pile of debt, appears to have failed in an attempt to sell itself and could be forced to file for bankruptcy within days, The Post has learned.

The retailer, which is also battling an overall downturn in sales of golf equipment, could end up in the arms of Dick’s Sporting Goods if it files for Chapter 11 protection, sources said.

http://nypost.com/2016/09/13/worlds-largest-golf-retailer-on-the-verge-of-bankruptcy/

[newtogolf]

I heard they will be filing Chapter 11.  They have had difficulty ordering clubs for customers because of their financial uncertainty.   Once they file, they should be able to establish credit terms with the manufacturers and be able to place orders again.  

The big question is which manufacturers get hurt the most by them filing Chapter 11 as it's likely any outstanding money owed prior to filing will not be paid back or will be paid back at pennies on the dollar.  My guess TM is going to take a big hit along with Callaway.  

[Hardspoon]

34 minutes ago, newtogolf said:

The big question is which manufacturers get hurt the most by them filing Chapter 11 as it's likely any outstanding money owed prior to filing will not be paid back or will be paid back at pennies on the dollar.  My guess TM is going to take a big hit along with Callaway.  

I'd guess they both get hit pretty hard; any manufacturer who unloads a large quantity of product on retailers is going to have some issues.

On the other hand, I'm guessing that the rise of Internet sales makes the closure of a big-box store a little easier to take.

[gregsandiego]

2 hours ago, nevets88 said:

Keep in mind, this is the NY Post, so grain of salt.

http://nypost.com/2016/09/13/worlds-largest-golf-retailer-on-the-verge-of-bankruptcy/

God I hope not. GolfSmith provides me with a free indoor practice range every day during lunch. I'd hate to see them go away or modify this store.

[newtogolf]

44 minutes ago, gregsandiego said:

God I hope not. GolfSmith provides me with a free indoor practice range every day during lunch. I'd hate to see them go away or modify this store.

Based on what I've been told, the Chapter 11 filing is designed to keep the business open since a sale was not made but some of the under performing stores will likely be closed.  

[gregsandiego]

10 hours ago, newtogolf said:

Based on what I've been told, the Chapter 11 filing is designed to keep the business open since a sale was not made but some of the under performing stores will likely be closed.  

The OC store I know is pretty quiet during the week. I'd guess the weekend is much busier.

There is one in San Diego that gets pretty crowded on the weekend.

Truth be told, if it wasn't for the free practice areas I'd have little reason to visit a big box golf store. It's true you can buy most of this stuff cheaper and easier online. 

[jamo]

The only reason there were ever any near me is because they bought up the US Golf Town stores. I liked the Golf Town stores more than Golfsmith, so if they're going under, that sucks.

[No Mulligans]

In San Diego there is a Golf Mart right across the freeway from a GolfSmith, it takes about 4 min. to drive from one to the other.  With the additional competition from online shopping...  Not just these locations, but those companies in general. Can they both survive?

If one of them goes under the other will certainly have a better chance of survival.

[jkelley9]

I wonder what the future will hold for them. I do like having a local Golfsmith. It's the only large golf store we have with relevant/modern equipment and Trackman's. Dick's doesn't compare. And we don't have a PGA superstore or anything here.

If they did do a store closing (at my location) you can bet your butt I would call over there and see when they would start discounting some good stuff :) 

Edited September 14, 2016 by jkelley9

[newtogolf]

1 hour ago, jkelley9 said:

I wonder what the future will hold for them. I do like having a local Golfsmith. It's the only large golf store we have with relevant/modern equipment and Trackman's. Dick's doesn't compare. And we don't have a PGA superstore or anything here.

If they did do a store closing (at my location) you can bet your butt I would call over there and see when they would start discounting some good stuff :) 

I doubt stores that cover larger territories would be closed unless those stores performed poorly.  We have 3 stores on Long Island, one in Lake Grove the other in Northport are about 20 miles apart, so it's expected that one of those two stores will be closed. 

It's not likely they would offer steep discounts on any equipment of value as under Chapter 11 they would just take the stores inventory and distribute it to other locations that will remain open or return it to the vendor.  What they would discount are items that are not worth packing and shipping so you may get some good deals on lower demand items but I wouldn't expect to get a new set of clubs at any great deal.  

I do know right now that you can negotiate a pretty good deal on used equipment, if you find something you like, make an low ball offer and they will probably work with you on a deal.  

[gregsandiego]

8 hours ago, No Mulligans said:

In San Diego there is a Golf Mart right across the freeway from a GolfSmith, it takes about 4 min. to drive from one to the other.  With the additional competition from online shopping...  Not just these locations, but those companies in general. Can they both survive?

If one of them goes under the other will certainly have a better chance of survival.

Maybe they should merge like Office Depot and Staples.

[boogielicious]

5 hours ago, gregsandiego said:

Maybe they should merge like Office Depot and Staples.

GolfSMart! 

[jkelley9]

7 hours ago, gregsandiego said:

7 hours ago, gregsandiego said:

Maybe they should merge like Office Depot and Staples.

Yes,

2 hours ago, boogielicious said:

GolfSMart! 

and Yes! Sounds like a win.

7 hours ago, gregsandiego said:

Maybe they should merge like Office Depot and Staples.

Yes,

2 hours ago, boogielicious said:

GolfSMart! 

...and Yes! sounds like a win :)

 

 

Wow I broke the multiquote thing. So that part is a fail lol.

Edited September 15, 2016 by jkelley9

[Pendragon]

22 hours ago, jamo said:

The only reason there were ever any near me is because they bought up the US Golf Town stores. I liked the Golf Town stores more than Golfsmith, so if they're going under, that sucks.

Is there a Golfers Warehouse near you? They're part of the Worldwide Golf Shops/Roger Dunn/The Golf Mart/Van's/Edwin Watts/ Uinta company. And they've got the best return policy out there...bring it back in 90 days for full store credit. 

[Joey G]

I hope this doesn't affect the Dallas area stores.

[Hiway1tele]

On 9/13/2016 at 9:15 PM, newtogolf said:

Based on what I've been told, the Chapter 11 filing is designed to keep the business open since a sale was not made but some of the under performing stores will likely be closed.  

The store a few blocks away from me in Plano,Tx is closing Oct 16...

I am glad a PGA superstore is a few blocks away also....

[Joey G]

5 hours ago, Hiway1tele said:

The store a few blocks away from me in Plano,Tx is closing Oct 16...

I am glad a PGA superstore is a few blocks away also....

Oh no! That's the store that I go to...just got a great deal on a set of women's clubs for my wife and daughter there. Wonder if they will start clearance pricing soon or just move the inventory to another location?

[Hiway1tele]

7 minutes ago, Joey G said:

Oh no! That's the store that I go to...just got a great deal on a set of women's clubs for my wife and daughter there. Wonder if they will start clearance pricing soon or just move the inventory to another location?

Joey,

They have another in west Plano i think...they may have a sale and then move the rest to the others...Golf-tec notified me they would be moving...altho I am done with them ...f your close by, hollar at me...lletterm@gmail.com