True Temper Files for Chapter 11
In more bad economic news, True Temper has decided to move forward with Chapter 11 in order to reduce their debt and save the golf and sports segment of the company. They plan to complete Chapter 11 restructuring in the next 60 days.
True Temper is no doubt a major player in the golf shaft industry. They not only make one of the most played iron shaft on the PGA Tour that of Dynamic Gold, they also market shafts made by Grafalloy, Royal Precision, and Alpha Q.
It was announced by True Temper that they had reached an agreement with their creditors that would significantly reduce their debt - from $275 million to $40 million.
That's the good news.
What does this mean for golf? Well, we all know the economic climate has significantly reduced our participation of our beloved game, in terms of people simply being able to pay the green fees. However does this mean something more? Debt restructuring has become a common business strategy these days, to stay afloat during this historical downturn.
Nevertheless, trends for golf is a bit gloomy, especially in the US. I recently read a report that golf is "ice cold" in the United States and Japan. Now, it makes sense for Japan to see this since they also see a volatile climate, coupled with a lack of real estate. However it also looks like we may be headed for some tough times here in the U.S.
Let's keep our fingers crossed for True Temper, and more importantly, the game of golf.
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