Projo Sports Blog

The company also plans to ask the court's approval to enter into a banking agreement with its lender, Wachovia Bank, which would allow the company to continue operating pending the sale, tentatively scheduled to be completed on or before August 7, Feigenbaum said.

Golfers' Warehouse voluntarily filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on July 9.

The company cited a combination of factors, such as a lack of credit, deteriorating sales due to the general downturn in the economy, and an inability to purchase adequate inventory for its stores.

"Without a sale of the . . . business prior to early August, [Golfers' Warehouse] will not be able to sell its business as a going concern," the company said in documents filed in U.S. Bankruptcy Court in Hartford.

The filing will facilitate the sale of the stores to Worldwide Golf, and will enable the company "to sell its assets in an orderly manner while protecting the rights of creditors, customers and employees," Feigenbaum said.

The Golfers' Warehouse store in Cranston is on Freeway Drive, just off Pontiac Avenue. Tucked away in a kind of office and industrial park, it is a popular spot for local golfers. The store sells golf clubs, golf balls, golf clothing and other items.

On Monday afternoon, a steady stream of customers dropped by to purchase or try out items.

Among them was Kevin Fox, 50, of Burrillville, who described himself as an avid golfer. "I've always had good luck with these guys," he said of the store. "I've never had a problem."

He also said that the store's "demo" policy is "the best in all of golf." (In general, the store lets a customer try out certain items, such as a golf club, before buying it, he said.)

Peter Fitzpatrick, 47, of North Providence, a golfer, said he patronizes the store because it has "great personal service," and because "the prices are always good and they have a great selection" of merchandise.

Golfers' Warehouse has six stores, including the one in Cranston, another in Hartford, and four in Massachusetts (Natick, Braintree, Danvers and Burlington). It has 107 employees, Feigenbaum said.

Overall, Golfers' Warehouse Inc. had about $28.4 million in sales for the year ended Dec. 31, 2008, according to court documents.

As of May 31, 2009, the company had assets totaling about $15.8 million and liabilities of about $20.8 million, court papers showed.

Its primary secured creditor is Wachovia Bank, which is owed about $1.5 million. (Wachovia's claim is secured by a lien on nearly all of the company's assets.)

Golfers' Warehouse plans to sell substantially all of its assets to the World Golf affiliate for about $3.6 million, including $3.1 million in cash and $500,000 in liabilities that World Golf would assume - including all customer gift cards and other such customer arrangements. (The figures are subject to revision.)

Golfers' Warehouse is owned by Golf Clubhouse Inc., of Ponte Verde, Fla., and its creditors include such well-known brand names as Callaway Golf, Nicklaus Golf Equipment, Titleist, Top Flite, Nike and Under Armour.

Government entities listed as creditors include the City of Cranston, the Rhode Island Division of Taxation, the Massachusetts Department of Revenue, and the Connecticut Department of Revenue Services

Media companies listed as creditors include Rhode Island radio stations WPRO, WHJY and WHJJ; Rhode Island TV stations Channels 6, 10 and 12; the Boston affiliate of ESPN radio; radio station WEEI; New England Sports Network; Golfing Magazine, and a number of newspapers, including the Providence Journal, New Haven Register, Hartford Courant, Boston Herald, Boston Globe.