Also the Canadian angle, Golfsmith will sell Golf Town to Fairfax Financial and CI Investments.
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Golfsmith International Holdings LP filed for Chapter 11 protection in the United States Bankruptcy Court for the District of DE on Thursday, one day after it’s Canada-based business, Golf Town, received similar relief from the Ontario Superior Court of Justice under Canada’s Companies’ Creditors Arrangement Act.
The restructuring plan of the company includes store closures in the US and the sale of its Canadian retail chain, according to the Journal report. It operates online, through direct mail catalogues and in physical stores under the Golfsmith and Golf Town nameplates.
The purchase price was not immediately revealed. According to documents the company owes between $100 million and $500 million to creditors. Fairfax and CI hold about 40 percent of the company’s senior notes. The company has asked the court to approve a restructuring plan for business operations.
The company claims Golf Town and Golfsmith operations will continue uninterrupted during the Chapter 11 proceedings.
AUSTIN, Texas-Austin-based golf Golfsmith International Holdings Incorporated has filed for bankruptcy.
Golfsmith on Wednesday filed for Chapter 11 bankruptcy protection, saying it could have to liquidate its assets if it can’t find a buyer.
GolfTEC, an independent provider of golf lessons with 204 locations, leases space in about 80 Golfsmith stores.
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The first round of expansion began in 1995. Creditors include Callaway Golf Co.
