Golfsmith International Holdings filed with the U.S. Bankruptcy Court a motion for entry of an order approving the Debtors’ key employee retention program (KERP).
The motion explains, “To successfully implement the recent sale of substantially all of Golfsmith’s assets, the sale of Golf Town and related transition services, and the orderly wind down of the Debtors’ estates, the Debtors must retain certain key employees. These employees are crucial, based on their experience, institutional knowledge, expertise, and vendor relationships, to providing services supporting (i) the store liquidations and transactions currently taking place as part of the sale of assets recently approved by the Court, (ii) the Transition Services Agreement with the Canadian purchaser of Golf Town (the ‘TSA’), and (iii) the wind-down of the Debtors’ bankruptcy estates. Accordingly, subject to the Court’s approval, the Debtors intend to adopt a Key Employee Retention Plan (the ‘KERP’) under which 127 of the Debtors’ non-insider employees (collectively, the ‘Key Employees’) will be incentivized to remain employed by the Debtors.”
The motion continues, “Moreover, the KERP will provide additional motivation for the Key Employees to accept the substantial additional responsibilities that they have been assigned in connection with the accelerated push-out of inventory to Golfsmith stores required in connection with the sale of Golfsmith. Accordingly, the Debtors submit that implementation of the KERP is essential to their efforts to maximize the value of their estates and should be approved.”
In addition, “The maximum aggregate amount of Retention Bonuses that would be paid under the KERP is approximately $955,000, with an estimated average Retention Bonus per Key Employee of approximately $6,700….Significantly, $655,000 of the KERP will be funded from the Golf Town purchase price as consideration for the support services that Golfsmith is required to provide under the TSA.” The Court scheduled a December 5, 2016 hearing to consider the KERP motion, with objections due by November 28, 2016.
Read more Golfsmith bankruptcy news.
The post Golfsmith International Holdings KERP Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.