Sept 14 (Reuters) - Specialty golf retailer Golfsmith International Inc plans to file for Chapter 11 bankruptcy and creditor protection in Canada as early as Wednesday, the Wall Street Journal reported, citing people familiar with the matter.
The restructuring plan of the company includes store closures in the U.S. and the sale of its Canadian retail chain, according to the Journal report. (http://on.wsj.com/2cV3GDa)
The creditor protection filings include an agreement to sell its Canadian chain Golf Town, to CI Financial Corp CIX.TO and Fairfax Financial Holdings Ltd FFH.TO , two of its largest creditors, the newspaper reported.
CI Financial, Fairfax Financial and Golfsmith were not immediately available for comments.
Austin, Texas-based Golfsmith will likely close some of its U.S. stores, a small number of stores in Canada and renegotiate some of its leases with landlords, according to the Journal.
Golfsmith has been in advanced discussions with potential bidders for its U.S. chain, but a sale was unlikely unless the company closed a number of its stores and cut its debt, the Journal reported citing a source.