Tiger Woods’ career has fallen off a cliff in recent years, and there is a lot of doubt about his ability to even return to semi-competitive form, let alone is hyper-competitive and dominant form he once managed. With Woods waning, golf as a sport has struggled to capture the eyes and hearts of younger people. As a result, the popularity of the sport is down, and companies connected to golf and manufacturing golf equipment have been struggling.
What does all of this have to do with business litigation and bankruptcy? Well, with the golf industry hurting, many companies are seeing their bottom lines look quite dire. And some are even going bankrupt. Take Golfsmith as an example.
Once one of the leading names in the golf equipment industry, Golfsmith is a retailer that has been hit hard by the decline in popularity of golf. In addition, online retailers and cheaper outlets put a huge dent in Golfsmith’s reach. Golfsmith filed for bankruptcy, and its owners — OMERS Private Equity — are looking to sell the company. A number of bidders have entered the negotiations, including Dick’s Sporting Goods.
There aren’t many other details for this story, but the lesson here is important: businesses that are struggling financially can look towards a bankruptcy filing to help them during these times. Not only can it help them cope with the represent, but it can help them in the future too by allowing them to create an exit strategy and sell their company to interested parties.