Golfsmith bankruptcy

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DON
Golfsmith bankruptcy

 

Two of the big beasts in the golf retail space are set to enter a bidding war for the right to purchase the bankrupt Golfsmith.

Dick’s Sporting Goods Inc is preparing a bid for the U.S. business of bankrupt Golfsmith International Holdings Inc., challenging an offer by rival retailer Worldwide Golf Shops.

While bids for Golfsmith were due earlier on Monday, Dick’s was given an extension until Tuesday morning to submit its offer.

The bankruptcy auction will the test the value of Golfsmith, which suffered because of competition from discount retailers Wal Mart Stores Inc. and Amazon.com Inc., as well as golf’s waning popularity among younger customers.

Privately owned Worldwide Golf Shops was preparing to submit a bid for Golfsmith on Monday, in partnership with liquidators from Great American Group LLC.

A winner will be selected after the auction, which is set for Wednesday. The aim is to close a sale, which a U.S. bankruptcy court judge must approve, before the start of the holiday shopping season. 

This is all news to me. I have a Golfsmith about 10 miles from me that I used to vistt a lot when they were making golf club heads and selling shafts and stuff. Since they went out of the component making business, I don't go there very much, but I had not heard anything about this new turn of events.

DON
One thing that made this

One thing that made this bankruptcy a surprise to me was that last week I go an email from them about them closeing two stores in the Chicago area. Seems odd they would close two stores this close to the bankruptcy hearing. Final bids were due on Wednesday.

Don

Putting is easy if you have the Right Putter.

Aimee
Aimee's picture
Golfsmith

guessing that they are buying the inventory for Golf Galaxy

It's not how...it's how many

Scott Rushing
Scott Rushing's picture
Well, you saw Nike choose to

Well, you saw Nike choose to stop making gear...These big box stores have huge inventories..I mean, 60 drivers from all the main manufacturers just sitting there with how many likely to go off the shelves each day?  2?  3? 

so not surprised to hear it though I wonder if it's specific stores in the chain going this way?  Havent' seen anything about our local stores going bankrupt yet.

My opinion is these stores need to operate with a lot less inventory than they have now.  Especially as the drivers are so adjustable, have a few of each shaft and a few of each head and put them together based on the sale.

Golf is a game that can only be played...

GolfGearReview.com Administrator

DON
Store Closings

I got an email last week telling me that 3 of the 4 Colorado Golfsmith stores are closing soon. According to the site, there are around 110 stores in total, and of that number only 30 are marked to remain open. All of the rest will be closing soon or have already closed. Not good news for the company and not good news for those golfers that like Golfsmith. We have two stores in the Denver area that are closing down and having going out of business sales, so I don't think too many golfers will be buying anything from the one remaining store in the area. Why pay full price at to store that will remain open when you can buy the same stuff from one of the stores that are closing down at a discount price???

Don

Putting is easy if you have the Right Putter.

scomac
scomac's picture
Golftown stores in Canada

Golftown stores in Canada were part of the greater Golfsmith company.  The Canadian stores have been purchased by an investment fund with several also earmarked to be closed.

I was in the Golftown near me a week or so ago and the store had been reorganized with staff cut in half and inventory noticeably reduced.  Basically they are trying to make the store look full with about 40% less product on offer.  I was the only customer in the store, granted it was a great day for golf.  There was very limited sale merchandise and it was all clearance type items.  The old operating model of having discounted clubs and balls on sale on a regular basis is gone.  Almost everything in the store was full retail.

Just another example of on-line retailers killing bricks and mortar operations.  I suspect that you will see a lot more people going back to buying at green grass pro shops because of the service if that's what you're looking for.  For the rest that operate under the buy it and try mode, cheapest is all that matters and that will always be the on-line option.  These big box stores are going to find themselves stuck in the middle.