Dick’s Sporting Goods couldn’t resist a bargain.
Golfsmith was sitting in Chapter 11 bankruptcy. It owed something in the neighborhood of $200 million to various creditors. Dick’s showed up at the court-ordered auction and paid $70 million — that’s basically 35 cents on the dollar.
Dick’s will now cherry-pick Golfsmith’s 139 locations and will probably keep only 30 of them open, most likely the profitable stores.
Dick’s will add those 30 stores to the 72 Golf Galaxy stores it already owns and the 102 retail outlets will make it the largest golf retailer around.
Worldwide Golf Shops has 72 locations, making it No. 2.
So the Golfsmith brand survives, albeit a more compact survivor.
4 Comments
beege
Tom,
where i live in boca raton there is a dick’s opening right next door to a golfsmith–amazing i would guess that golfsmith will be one of the closings.
Tom Edrington
When you look at 30 out of 139 surviving, that’s not even one per state….we have a huge Golfsmith in NW Tampa that I have used many times, it’s in an expensive center, it will be a function of profits and the ones with very expensive leases will close, no doubt. Boca is a high-rent district, depends on what the rent is there….
beege
i am actually in suburban boca where the rents are probably not terrible. the pga superstore in delray beach is where i go–i like the store alot better layout and they have what i want virtually every time.
this is a coup for dick’s for sure. getting the locations they want, the inventory and at a discount to boot should be good for everyone concerned unless you work in one of the stores closing then you are up the creek…….
Tom Edrington
The landlords with those leases in the closed location are grinding their teeth as well….