TearDrop Merger Collapses

TearDrop Golf, the parent company of the Tommy Armour and Ram brands, is facing bankruptcy in the United States after the collapse of its merger with Canadian company Gen-X Sports.

Last week, the company defaulted on its $25.5 million (£18 million) credit facility with Congress Financial bank, and parted company with president and chief operating officer Andrew M Kairey and fellow director John Raos. TearDrop also faces being delisted on Wall Street's Nasdaq Small Cap market in January.

But despite the termination of the proposed merger, Gen-X Sports indicated that it was still "interested in purchasing all of TearDrop Golf Company's assets...free and clear of all liens and encumbrances" and would be "submitting an offer within a few days".