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!

Seriously use a real bank over the centers, in situations like this why would you want to depend on the USBC to step in when all else fails and a center goes under when you can prevent it.

That's exactly what I intend to propose to my league's officers.

I've never seen anyone slip or fall in an AMF house.  And my driller is based at an AMF house, so I'm in there quite a bit.  Don't forget they have the warnings stuck on the lane at the foul line too.

There is a lot of ways to save money, power consumption on CRTs isn't as much an issue for most centers these days using LCD panels with half or less the power draw. Typically I don't hear the manager of the local center complaining about the electric bill. Lane maintenance, yes.

You want to change automatic scoring not replace it. It would be easy for every center to have the large scoring system similar to nationals at the cost of one projector per two lanes. You only need the software that sends the scoring signal to the projector in split screen mode like when playing video games on your home systems and it divides the screen for two player mode.

That simple little change in software would allow you to get rid of all your monitors and have just the projector hitting the wall/backdrop down lane. It would have a very new and cool look that league and open bowlers would like. Automatic scoring is what your open bowlers these days want/need.

"For those who don't know, AMF has a policy that their centers cannot oil the first 18-24" of the lane because open bowlers go past the foul line and slip. This is a stupid policy, has drastically dropped scores in my house (and I'm sure others) and made a lot of people mad."

How long has this been in place because I've never experienced this in any AMF centers I've bowled in. I'd imagine you'd want to throw the ball straight or loft it in order to play that kind of condition.

I didn't bowl for almost 2 years beginning in October 2010, and when I came back the rule was already in effect.

I noticed there was never any oil in the heads, and when I went to tell them something was wrong with the machine, the manager told me that was intentional and it was AMF policy. I really wish they had just gone with the stickers like it sounds some houses back east have done, but out here in California, I was told the first 18-24 inches couldn't be oiled for safety reasons.

Even though the AMF houses where I live have the warning stickers on the actual lane saying "do not cross foul line", they still have the stupid dry spot for the first 24 inches from the lane.

At least that house I bowl at (not an AMF house), you will slip if you go past the foul line.  Just as nature intended it.

The problem with bowling is automatic scoring.  To replace old automatic scoring with new is $135,000 for 24 lanes.  In the days of CRT monitors they never shut off even when not in use.  Electric bills for a 48 lane center can range from $10,000 to $12,000 a month.  Most of the energy is going toward scoring.  How many lines of bowling have to be played to cover the electric bill alone?  Thus we have the high priced games.  Cases of pins are around $120.  It takes at least 2 cases per setter to run correctly.  Multiply that by however many lanes and figure replacing at least once a year.  Resurfacing 24 lanes and approaches for wood is around $15,000 to $20,000 replacing with synthetics $135,000.  It doesn't take a rocket scientist to figure out it is expensive to own a bowling center.  If you could get rid of automatic scoring you wouldn't need 48 computers at 350 watts and 48 monitors at 100 watts usage.  You might actually be able to put money into air conditioning and fixing a roof.

Smash49

You can't run today's business with yesterday's technology...so YES centers need to update their scoring systems first.  Pins are the a cost of doing business.

I know that this is a unique situation, but I live in Las Vegas.  I believe that bowling
situations are almost ideal here and bowling is still struggling to get new league bowlers.  All bowling centers here are in casinos and the philosophy has always been
get people in the front door and we will get their money.  Prices are relatively low==
probably averaging about $1.50 per game.  All centers are well maintained and run
specials and tournaments for locals and it still difficult to turn a profit--and don't forget the great equalizers--slot machines.  The oil always begins about four inches from the foul line.