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.