AMF Bowling Worldwide Inc., the world’s largest bowling operator, filed for Chapter 11 bankruptcy protection to restructure its mounting debt.
The Hanover County-based company said this morning that it filed a pre-arranged petition with the U.S. Bankruptcy Court in Richmond.
AMF said it expects completing the restructuring process and exiting Chapter 11 within five months.
AMF operates a location in Lynchburg near the intersection of U.S. 29 and Candlers Mountain Road, near James T. Davis Paint Center.
The company said it will continue its normal business operations during the Chapter 11 process, and its bowling centers will maintain normal operating schedules.
AMF said it has reached an agreement with a majority of its secured first lien lenders and the landlord of a majority of its bowling centers to restructure it finances, which the company said will result in the elimination of a significant amount of its outstanding debt.
The book retailer will wind down its remaining 399 stores starting July 22 after it couldn’t reach an agreement with an earlier bidder, Najafi Cos., about an offer to keep the company running. Borders won’t hold an auction, as there have been no proposals to keep the company operating, it said in a statement Monday.
“We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution, and turbulent economy, have brought us to where we are now,” said Borders Group President Mike Edwards in a statement.
Liquidators led by Hilco Merchant Resources and Gordon Brothers Retail Partners, who were the opening bidders for the planned auction, will now buy the chain’s assets and liquidate them, subject to bankruptcy court approval. The deadline for bids passed Sunday without any offers.
WTNH has the only video report I have found so far…
