Equipment

Ben Hogan Golf Equipment Company closes down after pandemic struggles

Published

2 years ago

Jul 26, 2022

Ben Hogan Golf Equipment Company has confirmed that the business is no longer active after closing its doors last Friday, July 22, 2022.

The company enjoyed a re-inception in 2017, which included its majority shareholder and Manager of the Board for the BHGEC, Ex Works Capital, LLC, acting as the company’s primary source of funding.

However, according to BHGEQ’s CEO and President Scott White, after their investment portfolio was negatively impacted by the COVID-19 pandemic, the shareholder ceased providing financial support to BHGEC in late 2020.

In an email to GolfWRX, White stated:

“I am very proud of what we accomplished at the Company over the last few years. We had a great team and produced some excellent products that we think would have made Mr. Hogan proud. We were simply underfunded and couldn’t pursue a lot of the more expensive initiatives that would have accelerated our growth.”

Per White, after understanding that they could not provide the capital to the BHGEC to fuel continued growth, ExWorks Capital began a sales process (managed by Chiron Financial Investment Bank) in mid-2021 to identify new investors and/or sources of funding. This process was mostly unsuccessful for several reasons, and ExWorks Financial filed for Chapter 11 bankruptcy protection in March 2022.

Despite this, White added that BHGEC was mostly self-sufficient in 2021 and enjoyed its best year ever since pivoting to its DTC business model in 2017. Per White, the average revenue growth rate (2017 – 2022) was over 46.3%, while the company was break even at an operating level in 2021 and would have achieved (and surpassed) profitability targets if not for supply and financial constraints.

The website is still currently operating but features a banner noting that it is “unable to process orders.” While the company closed last Friday, White revealed in the email that he hoped it wouldn’t be permanent but added that it might well be.

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27 Comments

Ph

Jul 28, 2022 at 8:12 pm

To be growing nicely and breaking even in the super popular golf industry in mid 2021, the period we will all look back on as the easiest funding environment maybe ever, and not be able to find any financing/investment to keep the business going? Think some further probing is warranted there…glad I didn’t have any money with that investment firm!

Reply Report comment
David

Jul 28, 2022 at 1:48 am

Not a surprise at all. Most golfers only want to buy gear “the pros play” and why component makers have pretty much gone the way of the dodo and are picked up by Golfsmith.

PXG is only still alive because they are funded by billionaire and he is willing to lose money or have minimal returns (PXG is probably the equivalent of a lemonade stand for the rest of us).

I was a huge Hogan fan and have many sets of original Hogan irons that I still play when I play “classics” during the summer. Amazingly you can still pick up a pristine set of circa 70s or 80s Hogan irons for $150-300, and they perform just as good as modern blade irons.

BHGEC could have made it if they sold at component prices, but their price-point was too high for a DTC model, and they didn’t have as deep pockets as Bob Parsons.

C’est la vie…

Reply Report comment
Richard Johnson

Jul 27, 2022 at 2:14 pm

Sad to see the company go. I’ve played the Fort Worth 15 irons since 2017. Their equalizer wedges, hybrids and fairway woods are really good. But, they catered to a diminishing niche. Nice while it lasted.

Reply Report comment
BK

Jul 27, 2022 at 1:32 pm

So is there any way for us to buy the remaining stock that needs to be liquidated? I read that a stipulation of the Ownership required that nothing else be sold with the Hogan name, but what will happen to all the existing stock? I would love to pick up a set of PTX Pro’s for 1/2 off!

Reply Report comment
Edward Bardoe

Jul 27, 2022 at 11:49 am

The Hogan DTC concept substituted American assembly for Chinese assembly of Chinese made parts in order to allow customizing. Saved the retail store markup, but couldn’t produce enough volume to pay for the TV ads they bought this year. Perhaps also had to pay rental on the Hogan name from Callaway.

Reply Report comment
Peter

Jul 27, 2022 at 11:42 am

good riddance

Reply Report comment
- Richard
  
  Jul 27, 2022 at 1:12 pm
  
  Did your buddy smoke you with some Hogan irons, 1/3 the price of the trash you used?
  
  Reply Report comment
John

Jul 27, 2022 at 11:36 am

Crap clubs, no big loss.
Good riddance.

Reply Report comment
Steve

Jul 27, 2022 at 10:48 am

Here is the answer for Hogan, make a deal with Dicks.. Dicks has saved a lot of brand names and Ben Hogan clubs would be a quality addition to their line up a step above Tommy Armour.

Reply Report comment
pi

Jul 26, 2022 at 2:21 pm

Good example why capitalism is a failure: always searching for growth/increased profits. Ben Hogan golf did not close down because they were making a loss, but because they couldn’t grow enough for their investors.

Reply Report comment
- Gordy3279
  
  Jul 26, 2022 at 3:44 pm
  
  This is the most ignorant thing on this site ever. If you aren’t looking for growth or profits then there’s no point in owning a business. This is why probably you are broke or close to it.
  
  Reply Report comment
  - Joe
    
    Jul 26, 2022 at 4:34 pm
    
    You’re right Gordy, your comment is the most ignorant thing on this site ever. Eventually there’s no more juice to squeeze genius
    
    Reply Report comment
    - Moe Greene
      
      Jul 26, 2022 at 4:40 pm
      
      Wow, the amount of commies in this place is amazing and pathetic. Hope you all get your clubs at the salvation army and you play golf in your backyard as that is the only way your stance on capitalism makes any sense.
      
      Btw, you must be stealing your neighbors internet as those ISP companies sure do make a profit too. How can you afford it?
      
      Reply Report comment
      - Ray
        
        Jul 27, 2022 at 11:34 am
        
        Straight to the childish insults, as always with you online windbags.
        There is a big difference between making a fair / decent profit and outright GREED.
        
        I could add at least a dozen easy insults, but then id be at your level.
        
        Reply Report comment
      - Peter
        
        Jul 27, 2022 at 11:47 am
        
        As usual…
        Straight to the childish insults. Speaks to your character IMO.
        
        There is a big difference between a fair profit and outright GREED. Then again as you have 5,000 worth of PXG in your bag, who am i to tell you how to be a total sucker right?
        
        People in glasshouses, as usual… SMFH.
        
        Reply Report comment
        
        Moe Greene
        
        Jul 30, 2022 at 6:42 pm
        
        Insults? Why you already said you are commies? I am giving you your commie facts. Grow up.
        
        Reply Report comment
- CB
  
  Jul 26, 2022 at 6:04 pm
  
  What a really stupid comment EVERY company on earth is in business to make money du-dum!!
  
  Reply Report comment
- MICHAEL
  
  Jul 26, 2022 at 8:55 pm
  
  You do realize there’s never been a successful communist country, nor, one that could feed all it’s (unlucky) citizens. My friends from the former ussr tell me it wasn’t fun waiting in line for toilet paper.
  
  Reply Report comment
  - Peter
    
    Jul 27, 2022 at 11:47 am
    
    I guess you don’t remember COVID.. LMAO
    
    Reply Report comment
    - JF
      
      Jul 27, 2022 at 1:17 pm
      
      Never ran out of toilet paper here. You must be really full of sh*t if you needed that much TP!
      
      Reply Report comment
Matt

Jul 26, 2022 at 2:20 pm

Good riddance.

Reply Report comment
Brandon

Jul 26, 2022 at 10:30 am

DTC isn’t really appealing to most people for something as personal and subjective as golf clubs. I seriously considered the PTX Pro when I was shopping for new irons, but I couldn’t hit them so I didn’t buy them. I know they had some demo program, but that is just too much effort. When I’m buying new equipment I go to the store, hit the ones I like, and get what feels the best.

Reply Report comment
- Peter
  
  Jul 27, 2022 at 11:52 am
  
  Testing inside is futile and leads to very bad purchases IMHO
  Unless im testing outside, i aint buying
  
  Reply Report comment
  - Brandon
    
    Jul 30, 2022 at 8:40 am
    
    In an ideal world I’d agree with you. Unfortunately the hitting bay is the only place I can go hit all the current equipment back to back. Not disappointed with my Wilson Staff Model CBs though.
    
    Reply Report comment
Cdub

Jul 26, 2022 at 9:45 am

Man that is sad.

Reply Report comment
Stacey Uchtman

Jul 26, 2022 at 6:25 am

RIP

Reply Report comment
- Mike
  
  Jul 26, 2022 at 8:29 pm
  
  R.I.P. …..again.
  
  Reply Report comment

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Xander Schauffele WITB 2024 (May)

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Driver: Callaway Paradym Ai Smoke Triple Diamond (10.5 degrees @10.1)
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3-wood: Callaway Paradym Ai Smoke Triple Diamond (15 degrees)
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Check out more in-hand photos of Xander Schauffele’s clubs in the forums.

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Wedges: Callaway Jaws Raw (52-10S), Titleist Vokey Design SM10 (56-10S @57), Titleist Vokey Design WedgeWorks Proto (60-K @61)
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