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!

Is this 18-24" rule something new? I mean the last 2 - 3 weeks.

I last bowled Oct. 21st or so in a big East coast AMF house here in NJ, and the oil started just over the foul line, as it always has been. Our manager (a non-bowler) is VERY cheap. He won't even oil empty lanes between 2 leagues. So if this rule is in effect for all AMF US houses, he'd jump on it with both feet.

This is not the most critical aspect as far as their bottom line but every bowling center in my area does this unless it's run a really old out of the mainstream bowling alley that should be shut down but a rich guy likes to keep losing money.  AMF executives do not care whether you have a score board or a monitor to show the highest scores in the bowling center for the season.  AMF also doesn't care if you shoot a 700 series or higher, or a 298 game or higher that the score gets into the local bowling newspaper or even the local general news paper if they still do that.  This isn't the most critical aspect, but it's a very simple fundamental part of running a bowling center.  Even a new bowling center opened in 2009 which is way more geared toward entertainment than AMF is understands this.  I just shot 300 and my name is up on the monitors that sits right above the front desk.  Last month I had a 758 and my name got into the local bowling news paper.

The other thing you have to consider is AMF's synthetic lanes vs Brunswick synthetic lanes.  The current Brunswick lanes are much harder.  The harder lanes allows the bowling centers to put down less oil which leads to less machines problems in the back.  The lanes break down much slower than do AMF lanes.  I bowl at a 3 year old bowling center that put in Brunswick.  The older AMF center I bowled at for a decade and a half has the same exact oiling machine as the brand new center with Brunswick.  Both centers have a very good shot.  However the AMF lanes break down about 6-8 boards where the Brunswick change about 3 boards.

That also makes a huge difference on your operating cost.

The other thing you have to consider is AMF's synthetic lanes vs Brunswick synthetic lanes.  The current Brunswick lanes are much harder.  The harder lanes allows the bowling centers to put down less oil which leads to less machines problems in the back.  The lanes break down much slower than do AMF lanes.  I bowl at a 3 year old bowling center that put in Brunswick.  The older AMF center I bowled at for a decade and a half has the same exact oiling machine as the brand new center with Brunswick.  Both centers have a very good shot.  However the AMF lanes break down about 6-8 boards where the Brunswick change about 3 boards.

That also makes a huge difference on your operating cost.

Depending on what lane..but yes the older HPL lanes are much softer and the two lanes play much different. When you look at the cost it's not that much more...good point but not enough to make a difference.