Dick’s Said to Win Bankruptcy Auction for Golfsmith Assets
(Bloomberg) -- Dick’s Sporting Goods Inc. won a bankruptcy auction for the U.S. stores of Golfsmith International Holdings Inc., teaming up with liquidators to keep some of the locations open and close the rest, according to a person familiar with the matter.
The $70 million joint bid with Hilco Global and Tiger Capital Group would save at least 30 Golfsmith stores, said the person, who requested anonymity because the auction wasn’t public.
Coraopolis, Pennsylvania-based Dick’s didn’t immediately respond to messages seeking comment on the auction. Golfsmith lawyer Michael Walsh didn’t return a phone call and e-mail. Representatives of Hilco and Tiger didn’t immediately respond to calls and e-mails seeking comment.
When Austin, Texas-based Golfsmith filed for bankruptcy protection last month, it already had a deal for senior lenders to take over its Canadian stores, which operate as Golf Town, and slim down U.S. operations.
Golfsmith will return to U.S. Bankruptcy Court in Wilmington, Delaware, on Oct. 31 to seek approval of the sale to Dick’s and the liquidators. The company operates 109 Golfsmith stores in the U.S. and 55 Golf Towns in Canada.
The results of the auction were reported by Reuters earlier.
The case is In Re: Golfsmith International Holdings Inc. No. 16-12033, U.S. Bankruptcy Court, District of Delaware (Delaware).