Close up of bankruptcy petition

It may not seem like it when you’re trying to schedule a tee time at your local golf course, but the popularity of the sport has diminished in recent years. Millennials, used to faster-faced activities, aren’t replacing their parents and grandparents as golf enthusiasts. Therefore, it’s probably not surprising that, as the golf industry struggles, Golfsmith International, which bills itself as the world’s largest specialty golf retailer, is reportedly considering Chapter 11 bankruptcy.

Company Is ‘Explor[ing] Strategic Initiatives’

The company, which is based in Austin, Texas, is reportedly seeking a buyer as it prepares to restructure. It currently has approximately 150 stores that sell golf equipment, apparel and accessories.

Golfsmith merged with Canadian retailer Golf Town in 2012. It is owned by OMERS Private Equity, which is part of a pension fund for municipal employees in Ontario, Canada. OMERS hasn’t commented on the reported plans for Golfsmith, nor has the company that has reportedly been retained to help with a sale and restructuring.

A spokeswoman for Golfsmith released a statement, however, acknowledging that the company “has engaged financial advisers to explore potential strategic initiatives.” She said that the retailer “currently has the necessary liquidity to pay the company’s financial obligations as they become due” and the management team “is focused on strengthening the company and its business operations to maintain and expand its position as a leading golf retailer.”

Other Leading Sports Retailers Selling Less Golf Equipment

Golfsmith isn’t the only company impacted by the declining interest in golf. Nike Inc. recently announced that it would no longer sell golf equipment. Adidas AG is also selling fewer golf-related products.

It’s important for companies to explore their options amid changing economic and consumer climates. The sooner you seek financial, legal and other professional guidance, generally, the better chance you’ll have of weathering the storm and emerging on the other side, perhaps leaner and stronger than ever. It’s essential to seek the guidance of a bankruptcy attorney who knows the laws of the appropriate state as well as federal bankruptcy laws as you look at your options, including Chapter 11.