Golfino, the leading German golfwear specialist based in Hamburg, filed for insolvency at the local court of Hamburg earlier this month. The company continues to operate nonetheless. Jens-Sören Schröder, a lawyer with Johlke, Niethammer & Partner in Hamburg, has been appointed as provisional insolvency administrator.
The company’s financial problems are mainly attributed to a decline in sales and gross profit, although one-time operating effects also had a negative effect on the business. The company still has a €4 million bond, which comes due in 2023. In addition to the bond and equity as well as a silent participation of €2.5 million, Golfino was mainly financed by a syndicated loan granted by five banks.
These banks initially agreed to continue to support the company when the loan expired. According to Golfino, however, they have now decided not to continue on the previous basis. Golfino anticipated this decision, following a new loss in the financial year ended on Sept. 30, due to difficulties in the golfing industry.
Golfino, which has been operating in the market for 33 years, had already recorded a loss in the 2017/18 financial year, the second in its history. Together with a consulting company, Golfino developed a restructuring plan that is currently being implemented. A search for new investors was initiated at the time, but it has so far failed to yield positive results.
Golfino recorded a turnover of €31 million for its 2018/19 financial year. According to the Federal Gazette, however, the company had posted higher revenues of around €34.38 million in the previous year. The company’s annual revenues remained more or less constant at a level of around €36 million between 2013 and 2017.
The executive board says it regrets the negative consequences for its creditors but believes the insolvency proceedings to be necessary. The company is positive about the future, estimating the chances for continued operation to be good, considering the international reputation of the brand. The business development over the past two months shows increases in the company’s e-commerce business, while the company’s own stores and outlets have been performing positively and according to plan. However, the wholesale segment has remained below target.
In addition to its parent company, Golfino, the company has five wholly owned subsidiaries. There are 208 employees at the company and another 60 at its subsidiaries.
