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Author Topic: AMF Bowling files for bankruptcy again  (Read 19744 times)

qstick777

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AMF Bowling files for bankruptcy again
« on: November 15, 2012, 11:10:23 AM »

http://newsandinsight.thomsonreuters.com/Bankruptcy/News/2012/11_-_November/AMF_Bowling_files_for_bankruptcy_again/

Nov 13 (Reuters) - AMF Bowling Worldwide Inc, the world's largest bowling alley operator, on Tuesday filed for bankruptcy protection for the second time in 12 years, saying recent economic weakness has cost it business and left it with an unmanageable debt burden.

The Mechanicsville, Virginia-based company said it has agreed on a plan to significantly reduce its debt and turn over control to its lenders, enabling it to emerge from Chapter 11 before the end of April 2013.

AMF and 15 affiliates sought protection from creditors in the U.S. bankruptcy court in Richmond, Virginia. It said it had between $100 million and $500 million of both assets and liabilities.

The company said it operates 270 bowling centers in the United States and Mexico - more than three times as many as its nearest rival. It also said it has more than 20 million customers a year and employs about 7,000 people.

AMF Chief Financial Officer Stephen Satterwhite said in a court filing the company has been unable to sufficiently reduce costs to combat falling revenue, amid a 36 percent decline in large U.S. bowling league memberships since 1998.

"Unfortunately for AMF, the lasting effects of the recession and economic downturn have proven too difficult to overcome," he said.

Satterwhite said AMF had hired Moelis & Co to help sell its assets, but that the efforts proved unsuccessful as purchasers expressed concern about restrictions under lease agreements with iStar Financial Inc, AMF's main landlord.

The restructuring calls for Credit Suisse AG and other first-lien lenders to convert their claims into all the equity in a reorganized company, and for modifications to be made to the iStar leases, court papers show.

Lenders would also provide $150 million of financing to help AMF operate after emerging from Chapter 11.

AMF said it has lined up $50 million of financing to keep operating now, and that customers should see no difference.

The company also said its restructuring is subject to better offers from third parties in a court-supervised sales process.

AMF's roots date to 1900, when it was known as American Machine & Foundry Co and made equipment for the tobacco industry.

The company in 1946 introduced the automated pinspotter, which allowed the bowling pins to be reset automatically rather than by hand. For many years, AMF also sold recreational products such as Ben Hogan golf clubs and Harley-Davidson motorcycles.

AMF had previously filed for protection from creditors in July 2001 and emerged from bankruptcy the following year.

The case is In re: AMF Bowling Worldwide Inc, U.S. Bankruptcy Court, Eastern District of Virginia, No. 12-36495.

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With pricing at $5+ per game, is anybody surprised?

I can take my family to a 3D movie with popcorn and drinks for less than it costs to bowl......and at least the movie will kill 2 hours!


 

mainzer

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Re: AMF Bowling files for bankruptcy again
« Reply #1 on: November 15, 2012, 12:38:44 PM »
Their are no AMF houses around me locally but i have heard  of the prices and i can say i would never open bowl or bowl league in a AMF center if i could help it.

Maybe they could get someone in the door if they didn't charge outrageous prices per game.

Will this affect their bowling ball production? Or just the portion of the company that runs the centers
"No one runs...from the conquerer "

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dmonroe814

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Re: AMF Bowling files for bankruptcy again
« Reply #2 on: November 15, 2012, 01:00:00 PM »
Their are no AMF houses around me locally but i have heard  of the prices and i can say i would never open bowl or bowl league in a AMF center if i could help it.

Maybe they could get someone in the door if they didn't charge outrageous prices per game.

Will this affect their bowling ball production? Or just the portion of the company that runs the centers
I bowl in an AMF house.  I signed up for their email club.  I get 2 free games a week for each league I bowl in.  If I use those 4 free games up, I can bowl a practice league session for $8.00.  Fri this I get 3 games to bowl and a card for 5 more free games.  The continuously have specials like $10.00 for 2 hours of bowling.  Plus, if you can get off work during one afternoon a week, then you can bowl for 2 hours for free.  If you only bowl open bowling on Sat nite, then you will pay a premium.  If you are a serious league bowler, then you get lots of free/reduced price bowling.
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Polish_Hammer

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Re: AMF Bowling files for bankruptcy again
« Reply #3 on: November 15, 2012, 02:33:52 PM »
My home house is AMF as well. Many discounts for league bowlers to practice. The decline in league bowling is what hurts our house. 15 years ago there were multiple men's leagues and an early and late shift most nights.  Now only 6:00 leagues

Impending Doom

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Re: AMF Bowling files for bankruptcy again
« Reply #4 on: November 15, 2012, 02:43:47 PM »
Mainzer,

From what I understand, AMF Bowling and AMF300 and separate entities, with 900 Global having no ties to AMF Bowling.

And yeah, AMF centers aren't exactly the bastion of hospitality.

charlest

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Re: AMF Bowling files for bankruptcy again
« Reply #5 on: November 15, 2012, 03:02:32 PM »
Mainzer,

From what I understand, AMF Bowling and AMF300 and separate entities, with 900 Global having no ties to AMF Bowling.

And yeah, AMF centers aren't exactly the bastion of hospitality.

So which AMF corporate entity contracted with 900Global to do the design, marketing and distribution of AMF300 balls??
"None are so blind as those who will not see."

JPbowling151

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Re: AMF Bowling files for bankruptcy again
« Reply #6 on: November 15, 2012, 03:16:37 PM »
Mainzer,

From what I understand, AMF Bowling and AMF300 and separate entities, with 900 Global having no ties to AMF Bowling.

And yeah, AMF centers aren't exactly the bastion of hospitality.

So which AMF corporate entity contracted with 900Global to do the design, marketing and distribution of AMF300 balls??

I read that in 2007 900 Global purchased the rights to sell bowling balls with the AMF logo.
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3835

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Re: AMF Bowling files for bankruptcy again
« Reply #7 on: November 15, 2012, 05:59:32 PM »
I am 99% sure that is correct. AMF300 is to Global what Hammer/Columbia/Track is to Ebonite. Same company, same products, different stamp.

3835

tommyboy74

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Re: AMF Bowling files for bankruptcy again
« Reply #8 on: November 15, 2012, 06:54:46 PM »
I am 99% sure that is correct. AMF300 is to Global what Hammer/Columbia/Track is to Ebonite. Same company, same products, different stamp.

3835

You would be correct.  AMF300 is owned by 900 Global, similar to the EBI brands or Storm, Roto Grip, Azo and Master.  AMF Bowling Worldwide is part of QubicaAMF.  There had been talks about QubicaAMF merging with Bowltech, but haven't heard much of anything lately on that.
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LuckyLefty

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Re: AMF Bowling files for bankruptcy again
« Reply #9 on: November 16, 2012, 03:49:51 AM »
As DonMonroe states above, AMF centers give lots of great opportunities to their league bowlers and juniors who want to get going in the game.

Frankly I have never had more fun in bowling than this year thanks to their policies and policies for my kids.  Also nice bowling conditions though I sometimes find a way to make them look difficult!

I see tons of parties on weekends and even though they cut a little in to my fun, obviously they bring in the cash.

I hope many of their centers make it!

Regards,

Luckylefty
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kidlost2000

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Re: AMF Bowling files for bankruptcy again
« Reply #10 on: November 16, 2012, 07:52:46 AM »
Maybe they will get a bail out, or maybe they will likely close a lot of centers. If you can't survive, then your no longer needed.
« Last Edit: November 16, 2012, 10:39:26 AM by kidlost2000 »
…… you can't  add a physics term to a bowling term and expect it to mean something.

TWOHAND834

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Re: AMF Bowling files for bankruptcy again
« Reply #11 on: November 16, 2012, 07:59:41 AM »
Here is what I notice in my area.  AMF Centers are old and rundown.  They really had not bothered to do too much renovating to make it more inviting to people to come bowl.  So, since they dont have any money to do that, they are making up for it by losing more revenue by offering free stuff to league bowlers; only league bowlers prefer to go to centers that are more modernized (who doesnt like watching a game on a flat screen while they are bowling).  Even Brunswick, who 5 years ago was supposedly going through some financial difficulties themselves, have put money into their centers to get people to want to return there to bowl.  They renovated their seating, changed out the carpet, repainted, new signs outside, etc...  Add to all that, the independent run centers that are going up that have the ginormous game rooms, lazer tag, and other things that can keep the families as a whole "entertained" while leagues are going on.  AMF is going backwards in terms of getting people to want to walk through their doors.  I am wondering how much longer they are going to last.
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charlest

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Re: AMF Bowling files for bankruptcy again
« Reply #12 on: November 16, 2012, 09:29:38 AM »
I am 99% sure that is correct. AMF300 is to Global what Hammer/Columbia/Track is to Ebonite. Same company, same products, different stamp.

3835

You would be correct.  AMF300 is owned by 900 Global, similar to the EBI brands or Storm, Roto Grip, Azo and Master.  AMF Bowling Worldwide is part of QubicaAMF.  There had been talks about QubicaAMF merging with Bowltech, but haven't heard much of anything lately on that.

While "AMF300" may be the trademarked name under which 900Global design, markets and distributes the bowling ball and its supplies, "purchasing the rights" is or says to me that there is an ongoing business contract between AMF and 900Global. I don't know that this contract PERMANENTLY gave the rights to any AMF named bowling ball to 900Global in perpetuity.

Is that what you are saying - the main AMF company (which owns the bowling centers) can no longer, ever again make bowling balls and call them "AMF bowling balls"????
"None are so blind as those who will not see."

3835

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Re: AMF Bowling files for bankruptcy again
« Reply #13 on: November 16, 2012, 10:25:59 AM »
My understanding of the deal was Global purchased the AMF300 name to make and distribute balls and in theory, could be sold to Ebonite, Brunswick, Storm, etc. Now, is there a deal in the contract stating AMF can no longer make bowling balls under a different name? Don't know, but considering they handed over the right to do everything for bowling balls to Columbia many years ago and sold the right to Global a few years back, I do not see AMF starting a new bowling ball brand for the sake of making bowling balls again.

charlest

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Re: AMF Bowling files for bankruptcy again
« Reply #14 on: November 16, 2012, 04:41:45 PM »
My understanding of the deal was Global purchased the AMF300 name to make and distribute balls and in theory, could be sold to Ebonite, Brunswick, Storm, etc. Now, is there a deal in the contract stating AMF can no longer make bowling balls under a different name? Don't know, but considering they handed over the right to do everything for bowling balls to Columbia many years ago and sold the right to Global a few years back, I do not see AMF starting a new bowling ball brand for the sake of making bowling balls again.

I wasn't so much interested in that, but in the fact, that once a company goes bankrupt, all its contracts are null and void (as far as I know). If people on the other side of the contract are owed money, they become creditors on the bankruptcy and get in line with the others. At the point of bankruptcy, 900G's contract to make (design & distribute) balls for AMF in no longer in effect. I assume 900G can use another name, but whoever buys the corporate AMF name, then owns that name. I believe the fact that there's a "300" at the end of 900G's name for their ball brand does not mean a lot. I could be wrong. Corporations do tend to hide a lot of information about themselves.
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