News that Nike Inc is getting out of the golf equipment business, caught many super stars out.
This was for some a surprising announcement, that is sure to send Tiger Woods, Rory McIlroy and other players searching for new clubs and golf balls next year.
Nike said it would stop making clubs, golf balls and golf bags, instead devoting its resources to shoes and apparel, longs its strength in the golf marketplace. The announcement comes after Nike in June posted an 8.2% drop in sales of golf articles to $706 million during the fiscal year that ended in May.
Americans are losing interest in playing golf — and it’s taking its toll on business. Golfsmith, a 150-store golf specialty retailer, has hired an investment bank and restructuring expert as it weighs a possible bankruptcy court filing, according to a report in the New York times.
The Austin, Texas-based chain, caught in the middle of a downdraft in the sport — roughly 6 million people, or 20 percent of those who regularly play golf have walked away from the game since 2000.