On September 14, 2016, Golfsmith International Holdings, Inc. and twelve affiliates filed a Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.  The case, docketed as 16-12033, has been assigned to The Honorable Christopher S. Sontchi.

According to the declaration of Brian Cejka filed in support of the petitions, economic downturns, industry trends and global consumer behavior have put significant pressure on performance.  Additionally, Mr. Cejka reports that in recent months, key vendors have tightened trade terms, limiting the company's access to inventory.  The debtors have received a binding offer to sell its Canadian business, which it proposes to use to pay down some of its ABL obligations.  Mr. Cejka notes that it is the debtors' intent to stabilize the business and pursue a financial and operational restructuring around a smaller group of profitable stores.