AMF Bowling Worldwide, the world’s largest bowling alley operator, yesterday 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, Va.-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. The company said it had between $100 million and $500 million of both assets and liabilities.
AMF 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 US bowling league memberships since 1998. Efforts to sell assets were unsuccessful.
AMF said it has lined up $50 million of financing to keep operating now and that customers should see no difference.