Golf Company Known for Its Free Giveaways Enters Bankruptcy
It appears freely giving free golf clubs may not be the name of the game to overcoming terrible success, vexatious litigation and a lack of management.
Warrior Custom Golf Inc., the manufacturer excellent acknowledged for its tv classified ads boasting no-strings-attached giveaways of golf balls and golf equipment, filed for financial ruin in Texas this week. The Chapter eleven petition lists assets up to $10 million and debt of as a good deal as $50 million. Ten affiliates also sought protection including Warrior Golf LLC.
Warrior Golf owns and manages 18 golf guides across u. S ., which includes Cimarron Golf Resort located in Southern California. Cimarron is the company’s most important course and fell prey to flooding during top season closing yr, in line with court docket papers.
The identical “tough surroundings” other golf enterprise participants have faced in current years, a “lack of control depth and professional monetary support” and debt duties contributed to the submitting, Chief Restructuring Officer Jeremy Rosenthal wrote in a court docket assertion filed Tuesday.
They want to file become multiplied via the access of a judgment stemming from Warrior Custom Golf employees allegedly misleading and soliciting extra than $1 million in investments from a senior man for nearly a decade.
The complaint filed in Manatee County, Florida closing yr information how in 2007 a Warrior Custom Golf consultant allegedly referred to as 86-yr-antique Cecil Mellinger in an try to sell him discounted golfing golf equipment. When Mellinger declined, the representative offered a funding opportunity that would flip $5,000 into $20,000 in 3 years, according to court docket papers. Mellinger invested $15,000.
Over the following nine years, consistent with the criticism, the company solicited additional cash 23 times, funneling extra than $1 million from Mellinger into various LLCs — even after Mellinger suffered a stroke that impaired his cognitive abilities. In 2017, the investments were converted to promissory notes worth kind of $422,352 or 40 cents at the dollar. The court required Warrior Custom Golf, Warrior Acquisitions, and Warrior Golf to publish collateral totaling approximately $1.3 million with the aid of March four to live the execution of the judgment.
Lacking the funds to put up the collateral while they venture the default judgment and to avoid the preferential judgment lien being filed towards the Royal St. Augustine Golf Club in St. Augustine, Florida, the companies and related entities filed for financial ruin. On Wednesday, a Texas choose approved the enterprise’s request for as much as $2.55 million of debtor-in-possession financing, in step with courtroom papers.
Warrior Custom Golf has generated extra than $270 million in sales to approximately 1. Three million clients because it was based through Brendan Flaherty in 1998. Warrior Custom Golf usually has annual sales of extra than $15 million, in step with the filings. Warrior Acquisitions, the golfing course management entity, generated approximately $thirteen million of annual revenue in current years and posted a working loss of $680,000 final 12 months.
The organization declined to comment through a spokesperson. A press launch published Wednesday says the agency “has enough liquidity to fund operations” and remains open for the enterprise.