Golfsmith International filed for bankruptcy protect in U.S. Bankruptcy Court in Delaware on Wednesday, paving the way for its potential sale or liquidation.
The Austin, Texas-based company listed debt and assets of as much as $500 million each in the filing. When the company was acquired in 2012 by OMERS Private Equity Inc., part of the Ontario (Canada) municipal employees’ pension fund and the owning company behind Canadian golf store Golf Town, the combined company took on in upwards of $200 million of debt.
The company also said it would try to sell part of its chain -- Dick's Sporting Goods is a potential suitor, per the New York Post -- while closing some stores. If that plan fails -- and the company was forced to make this filing after unsuccessfully finding a buyer -- then the company would liquidate entirely.
Golf Town is expected to be sold to two of Golf Town's largest creditors.
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There are 151 company locations, including 56 Golf Town stores.