Golfers’ Warehouse, which has a flagship store in Hartford, has filed for Chapter 11 bankruptcy and is being sold to a California-based golf accessories retailer, court documents show.
According to court papers filed Thursday in Hartford bankruptcy court, Golfers’ Warehouse estimated its assets and liabilities each between $10 million and $50 million
Under Chapter 11, a company is shielded from creditors while it works out a court-approved plan to repay creditors.
Hartford attorney Barry Feigenbaum, who represents Golfers’ Warehouse in its bankruptcy proceeding, said the company is preparing to sell its six stores in Connecticut, Rhode Island and Massachusetts to Worldwide Golf, a California-based retailer that markets golf accessories in stores and online.
Feigenbaum said the recession and slowdown in retail sales has hit the golf industry hard, and Golfers’ Warehouse hasn’t been spared.
He added that the company has also had difficulty financing its inventory.
“The troubles plaguing the financial sector have had an impact on the company in terms of its financing,” said Feigenbaum, who added that Golfers’ Warehouse’s primary lender is Wachovia Corp., now owned by Wells Fargo & Co.
Feigenbaum said the company hopes to conclude the sale by Aug. 7 and that it is looking for court approval to honor customer gift cards and coupons.
Feigenbaum added that there could be job losses related to the sale, but he’s not certain if any stores will be closed.
He said the Hartford store will likely remain open.
“It’s our hope the buyer will hire as many existing employees as possible,” Feigenbaum said.
Calls placed to Golfers’ Warehouse and Worldwide Golf were not immediately returned.
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