Golfsmith, which is recognized as the largest specialty golf retailer in the world, initiated Chapter 11 bankruptcy proceedings Wednesday.
The Austin, Texas-based company operates 109 stores in the United States under the Golfsmith name, and 55 stores in Canada under the Golf Town banner.
Golf Town has been sold off to Fairfax Financial and CI Investments, which intends to keep open an undisclosed number of profitable Golf Town locations.
With the threat of bankruptcy looming, Golfsmith had been searching for a buyer for much of the summer. The company had listed debt and assets of as much as $500 million each in Delaware court, and will now restructure under the protection of Chapter 11. Underperforming Golfsmith stores will be closed and assets will be liquidated.
Golfsmith was acquired by Golf Town in 2012 and is owned by OMERS Private Equity Inc., which is part of the Ontario municipal employees’ pension fund.