Golf USA did not fare well during the last recession, which saw an across-the-board decline in the golf industry, Bowen said. The company had also seen a change in its majority ownership over the past few years, he said. “Hopefully, they will reorganize and come out of this stronger,” Bowen said.
Golf USA had recently experienced tension with some of its suppliers and franchisees.
In December, a Golf USA franchisee in Zimbabwe filed a federal lawsuit in Oklahoma City against Golf USA, claiming that the franchiser's failure to provide essential inventory and other services had caused its store to fail.
In court documents, the Zimbabwe franchisee accused Golf USA of failing to disclose its “declining financial resources, unresolved issues with golf equipment manufacturers and suppliers, strained relationships with the Golf USA franchisee community, and its inability to provide the level of support and assistance required by its written franchise agreement.”
The lawsuit was dismissed when the parties entered arbitration in April.
Calls to Oklahoma City attorney Douglas Gould, who is representing Golf USA in its bankruptcy, were not returned.
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We are saddened by the fact that they had to do this, but we are still open for business.”
Golf USA franchisee