Golf Businesses Struggle as Interest Fades
From the New York Post:
“Golfsmith, a 150-store golf specialty retailer, has hired an investment bank and restructuring expert as it weighs a possible bankruptcy court filing, according to a report.
“The Austin, Texas-based chain, caught in the middle of a downdraft in the sport — roughly 6 million people, or 20 percent of those who regularly play golf, have walked away from the game since 2000 — hired Jefferies to solicit potential buyers and Alvarez & Marsal to help it restructure, according to Bloomberg News.
“With the number of people playing golf falling to 24.1 million last year from 30 million in 2000 — when Tiger Woods burst upon the scene, winning three major tournaments — Golfsmith is not the only company feeling some pain.
“On Wednesday, Nike said it was exiting the golf hardware business, its worst-performing division. The company will stop making bags, balls and clubs and will concentrate on shoes and apparel.
“In May, Adidas said it would sell its money-losing TaylorMade, Adams and Ashworth golf equipment businesses. It, too, will focus on Adidas golf footwear and apparel.”
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