GolfSmith Filing for Bankruptcy?

[GolfSpy Barbajo]

Okay, we've officially entered Bizarro World....

 

As reported by GolfSpy T just a few moments ago:

 

Here is the full report from Bloomberg:

 

"Golfsmith International, the retailer of golf clothing and equipment, is considering filing for bankruptcy as it looks for a new owner, according to people with knowledge of the situation.

Golfsmith hired the investment bank Jefferies LLC to solicit buyers for the roughly 150-store chain, without success so far, said the people, who didn't want to be identified because the process isn't public. The company also hired Alvarez & Marsal to help it restructure, according to the people, who said that a sale could come as part of a Chapter 11 filing.

To quote a politically incorrect 3 Stooges classic....

 

"This house has sho gone crazy,..."

[Severtheties]

Granted the timing is of course suspicious, but I cant imagine this has anything to do with Nike news? I'd imagine this had to have been a long time coming for them.

[MmmmmmBuddy]

There is nothing good that becomes of this, other than possibly launching hundreds of small shops all across the land.... 

[PlaidJacket]

Again... I'm not shocked. Surprised a little I suppose. The last two times I was in a GS in Austin it was mostly deserted and no sales people were around. It's a huge place. Probably too huge.

Hope it works out for them.

[Severtheties]

They had 2 stores here in Columbus for awhile. Consolidated down to 1 large store a few years back. I've been in it a few times and it seems to do alright but never nearly as busy as golf galaxy around here. I found a small family owned shop close to home though and have been frequenting them as much as possible.

[Mr_Theoo]

Granted the timing is of course suspicious, but I cant imagine this has anything to do with Nike news? I'd imagine this had to have been a long time coming for them.

This reminds me of when BBY went bankrupt. I think they need to realize the way people buy clubs. Especially the avid golfers has changed. Most aren't dropping 500+ for off the rack anymore

[jayjay0808]

If this is true I am again more sorry for people that will be losing their jobs. 

[Severtheties]

That's funny - I was thinking the same thing today too. There's absolutely nothing setting it apart from other competition in the same space. That's scary!

[Undershooter]

I know this isn't the same thing but there are a couple of big box stores around us. 2 Dicks sporting goods in particular. 1 of them has no competent 

people in it and is worthless to go to unless you are buying balls or something. The other store has a guy who is certified to fit people and fix clubs. He's knowledgeable and a club junky like most of us. I've heard him tell people time after time that when they come to look at clubs that he'll fit them on the spot and cut down the club and adjust lie angles, loft or whatever. To me this is what is missing from most big box stores. At least the ones I've been in. Every time I'm there and someone brings up the length of the drivers he insists that the only reason that they are that long is so he can fit them to the specific consumer and cut them to the correct length for people. The longer shafts are just so he doesn't need to put extensions in there. Now this may not be true in the least but it makes perfect sense to anyone he's selling a driver to. 

[jlew2144]

Craziness...can honestly say I've been to the GS in Columbus twice...but that's because GG is 4 minutes from my house.

 

Timing of these announcements is odd..Hogan ceo stepping down, Nike out of golf, Golfsmith maybe chapter 11... what's next?

[GolfSpyC]

I certainly don't want this to come across as super callous, but it's this what is supposed to happen as part of a market-based economy? There are winners and there are losers and I understand with what's happened at Nike and now (potentially) at Golfsmith (as well as Sports Authority, etc) there's a huge human element and a very real impact on real people - But by and large, markets expand and contract. That's the way the cookie crumbles and there's a larger argument, I believe, that this is actually a good thing for golf. 

[Fireinthehole]

This may come as callous as well but I want the cheap golf stuff that follows

 

That's not eloquent, but I must say I like going to the store as it's the closest site with the biggest inventory near me

 

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[Kenny B]

How many people go to GS and other big box stores to look at/try out clubs, then buy them online to save a few bucks.  Those are the people that drive these stores out of business.

[fozcycle]

Let's see......last year we had the Dick's massive layoff, then Sports Authority bankruptcy. This year it's who wants to buy Adams or Taylormade plus Nike exit and Golfsmith bankruptcy looming overhead.

 

The business of Golf has surely been on a roller coaster ride!

 

 

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[Fireinthehole]

How many people go to GS and other big box stores to look at/try out clubs, then buy them online to save a few bucks. Those are the people that drive these stores out of business.

I'd say im guilty, I do this 50% of the time, but they price themselves out with used inventory. Giving 30% or less on trade ins and then selling them for 3x the trade in amount. Once traded in some irons in excellent condition (before I gained sense), got $150 for trade in, saw them for $600 the next week.

 

 

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[GolfSpyC]

How many people go to GS and other big box stores to look at/try out clubs, then buy them online to save a few bucks.  Those are the people that drive these stores out of business.

 

I'm sure there are plenty, but stores are complicit in allowing this to happen. If they can't add some type of value and people are going online to save 5% or whatever, then the store is part of the problem. 

 

The online world isn't going away and companies have to figure out how to exist in this environment. 

[rodeocody]

Every time I go to be store never have any thing in Stock I can use they always have to order in so ya I'm guilty of buying online for half the price hate to see places like this go hopefully golf economy grows again in young consumers

[sp0rtsfan86]

I have little to no feelings for Golfsmith. They hired a person who told me I wasn't good enough to get custom fit. They rarely have anything that's on sale but I think that's the golf industry as a whole. I'd go there for balls and things like that, plus to see or feel new clubs. I don't buy clubs a lot so it's mainly just to see what's around. I find better deals at mom and pop shops anyway. It will be interesting to see if we see any sales on the grip/shaft tools than anything else.

[fozcycle]

I used to shop religeously at Golfsmith....until they sold to a Canadian company and quit bartering on used club prices......A few years ago you could trade in clubs and walk out with a fair deal. Several years ago i traded some Mizuno irons for a new set of Nike VR Pro CB's....The last couple times I went in there I noted that the the Mizunos were still on the shalf, priced way out of fairness.  So I am not shocked by this bankruptcy news.

[numberonecoog]

I wrote on my blog a few months ago how the Golfsmith in Dallas was the saddest place in Dallas. 6 employees for 2 customers