Golfsmith Bankruptcy – 59 Stores to Close
December 20, 2016
In the buyout of Golfsmith from Dick’s Sporting Goods, 59 stores across the nation, including nine in California, are slated to close during the next few months, according to information obtained from a bankruptcy auction. As of November 2016, the chain had 109 stores in the country, but the new owners planned to keep only 30 stores open. Despite the previous closure of 20 stores, Golfsmith could not remain solvent.
Dick’s bought the struggling chain for $70 million. In order to liquidate merchandise, the chain will enact reductions of up to 30 percent valued at $80 million and which will include current models of golf equipment.
The five California stores that will stay open include San Diego, Palm Desert, Pasadena, San Jose and Pleasanton. The first retail store and main campus, located on 40 acres in Austin, Texas, is among the stores scheduled to close. The facility boasted 240,000 square feet used for product development of the store brand and as a distribution and shipping center. The campus also boasted a driving range, used for teaching.
The stores might retain the Golfsmith name and brand or might be absorbed as part of Dick’s existing branch, Golf Galaxy. Dick’s Sporting Goods has not yet released a decision on how they will proceed. The closed stores were apparently in direct competition with Golf Galaxy stores.
However, an independent retailer with significant experience in the golf industry reported that customers focus much more on their personal experience and do not worry about the brand. He further indicated that their opinion is based on the type of experience they have when shopping. He went on to say that if the shopper hasn’t personally been affected by the bankruptcy, then the name above the door will not affect them too much. He finally stated that good employees are the best defense against losing loyal customers. He believes that Golfsmith is retaining customers through exceptional customer service.
Larry Bellomo is an Orange County bankruptcy lawyer that works both personal and business cases. If you believe bankruptcy might be necessary, contact us today for a free consultation.