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There were rumors dating back to the summer, which now are confirmed to be true. Edwin Watts Golf Shops LLC, owned by private equity firm Sun Capital Partners Inc, has filed for chapter 11 bankruptcy protection, based on a court filing (Case No. 13-12877, U.S.Bankruptcy Court, District of Delaware). The golf retailer listed estimated liabilities and assets of $100 million to $500 million. It has more than 88 domestic stores and also handles consumer transactions via its web site. Its unknown to what extent its vendors, including equipment companies, are vulnerable to the filing. Edwin Watts Golf Shops LLC is attempting to restructure its debt through bankruptcy court supervision. The retailer must first list its creditors including the all amounts owed and then a plan to repay its outstanding debt while it remains open for business. Its possible and quite likely it will request the bankruptcy court to dismiss a portion of its debt that is currently outstanding in which it is delinquent in paying. Each creditor must be notified separately regarding the filing and allowed to contest with the court any possible dismissal of the monies owed to it. Once a bankruptcy court judge approves a plan, the retailer will begin payment to the court, which will oversee through a trustee dispersing to its outstanding creditors on an orderly basis. Depending on the structure of each outstanding claim, its conceivable that a portion can be eliminated, according to the bankruptcy judge that approves the plan. Therefore, existing creditors will have to wait to see first how much they will receive and second how long it will take to be paid back.