DENVER BUSINESS JOURNAL - Golfsmith International Holdings Inc. has filed for bankruptcy in federal court to restructure its debt, close underperforming stores and sell its Canadian-focused subsidiary, Golf Town Inc.
The Austin-based golf equipment retailer, headquartered on a 40-acre campus at 1100 North I-35, has more than 164 retail stores nationwide between its Golfsmith and Golf Town brands. It filed for Chapter 11 bankruptcy in the U.S. District Court for Delaware on Wednesday morning. According to documents filed with the court, the company owes between $100 million and $500 million to its creditors, which include some of the largest golf equipment manufacturers on the planet.
For instance, Golfsmith said it owes approximately $5.5 million to California-based Callaway Golf Co. (NYSE: ELY), $5.1 million to Taylormade Golf Co. Inc., $3.5 million to Nike USA Inc. (NYSE: NKE), $2.3 million to PING Inc. and $2.1 million to Titleist/Acushnet Co.
Golfsmith owes its 30 largest creditors a total of $29.9 million, according to court documents.