Rumours swirl Nevada Bob's on verge of deal

Reports circulated yesterday that troubled retail chain Nevada Bob's Golf Inc. is on the verge of signing a deal with a buyer. The golf supplies seller is said to be under the gun to sell from a powerful group of U.S. creditors.

National Post
October 12, 2000

Rumours swirl Nevada Bob's on verge of deal
Pressured by creditors
Hollie Shaw

Reports circulated yesterday that troubled retail chain Nevada Bob's Golf Inc. is on the verge of signing a deal with a buyer. The golf supplies seller is said to be under the gun to sell from a powerful group of U.S. creditors.

"They have a Canadian buyer who is willing to buy the company for pennies on the dollar. But [Nevada Bob's] doesn't want to make up its mind," said an industry source close to the situation, who added six prominent U.S.-based golf suppliers were on the brink of filing a court petition to force the sale.

Nevada Bob's, which has 281 corporate and franchise stores worldwide — with 41 corporate stores in Canada and 37 in the United States — revealed Tuesday that it is US $30.3-million in debt and has been unable to pay its bank loan or its bills. Second-quarter financial statements for the period ending July 30, 2000, said the Calgary-based golf specialty retailer posted a net loss of US$19.5-million on franchise revenue of US$638,492 for its second quarter.

The source said about US$8-million to US$9-million of the US$20.2-million owed to creditors is due to various Canadian suppliers.

Izzie Abrams, chairman of the board of Nevada Bob's, said yesterday he could not comment on whether the company is close to a sale.

"We're at a delicate stage right now. I would not want to discuss what we are doing with other parties."


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