what is amf bowling?

AMF Bowling (AMF Bowling Worldwide) is a major operator of bowling centers and major manufacturer of bowling equipment.

The AMF brand continues in use by the following companies:

The bowling centers are ten-pin bowling centers where bowling may be purchased per game, per hour, or as part of a birthday party or corporate event package. Many locations support bowling leagues. Because many of the AMF-branded bowling centers were acquired from other parties, some centers may use bowling equipment manufactured or distributed by other companies such as Brunswick Bowling & Billiards and Switch International Bowling instead of AMF-branded equipment.

The American Machine and Foundry (known after 1970 as AMF, Inc.) moved into the bowling business after World War II, when AMF automated bowling equipment and bowling centers became profitable business ventures, and in subsequent years into many other manufacturing businesses. Aging production facilities and increasing quality control problems in some product lines caused sales declines in the late 1970s and early 1980s. The company's vast diversified output proved difficult to efficiently manage, and the company began to experience losses. Bowling remained quite profitable, however, so the company began a campaign of expansion in this area, spending nearly $100 million on acquisitions of bowling centers in 1984 and 1985. In 1985, corporate raider Irwin L. Jacobs's Minstar, Inc. bought AMF Inc. and began to sell its various business divisions.

Commonwealth Venture Partners, a group of private investors in Richmond, Virginia, paid $225 million in 1985 to purchase the bowling center and bowling products divisions, forming AMF Bowling Companies, Inc. (later known as AMF Bowling Worldwide). In 1996 Goldman Sachs paid $1.4 billion to buy the company from Commonwealth Ventures. AMF Bowling went public with its listing on the New York Stock Exchange in November 1997. In 1998 its stock price plummeted as losses mounted, so expansion plans were put on hold. In 1999 the decision was made to downsize. By 2000 the company was more than $1 billion in debt and was delisted.

AMF Bowling entered Chapter 11 bankruptcy for the first time in April 2001, stating that it had “overextended itself by acquiring 260 additional bowling centers that it had struggled to manage,” and that the demand for bowling products had decreased. Private equity firm Code Hennessy & Simmons bought the company in 2004 for $670 million to bring it out of bankruptcy. The transaction was financed in part by a $254 million sale and lease-back of 186 bowling centers to iStar Financial. Shortly after, the company began shedding its “non-core, foreign assets” to focus on improving the operations of its remaining centers. Fred Hipp, the former California Pizza Kitchen top executive who became President and CEO in 2004, said the strategy would now be to “bring as much focus as possible to the management of our core U.S. center and bowling products businesses." In 2005, AMF Bowling's products division and Italian-based Qubica Worldwide formed a 50/50 joint venture, QubicaAMF Worldwide.

AMF Bowling went into Chapter 11 bankruptcy for the second time in November 2012. In its filing the company cited the challenge of adjusting to “the marked shift in the average bowling customer”. In 2013, AMF Bowling was brought out of bankruptcy through its merger with Strike Holdings LLC (doing business as the bowling center operator Bowlmor Lanes), bringing all remaining bowling centers and the 50% interest in the QubicaAMF joint venture under the control of Bowlmor AMF (now known as Bowlero Corporation). Bowlmor AMF sold its QubicaAMF joint venture interest to Qubica in 2014.

At the formation of AMF Bowling in 1986, Commonwealth Ventures acquired the 110 AMF-owned bowling centers in the United States and abroad, as well as the 22 centers owned by one of the partners in Commonwealth Ventures, Major League Bowling Corp. Commonwealth then spent nearly $500 million revitalizing the bowling center business with a focus on expanding the appeal of bowling to league and casual bowlers. In 1991 the company hired former PepsiCo executive Mark Willoughby to head the bowling center business. Willoughby set out to make AMF Bowling the “McDonald's of bowling”.

The company became the largest owner of bowling centers in the US in 1995 with the acquisition of Fair Lanes, Inc., which the year before had been through a leveraged buyout, filed for bankruptcy, and then emerged from it as it struggled to get the cash needed to renovate its centers. The addition of Fair Lanes's 106 bowling centers brought AMF Bowling’s total to 205 centers in the US and 79 overseas.

When Goldman Sachs acquired the company in 1996, its strategy was to clean up purchased properties and create a national chain of amusement complexes. That year, the company bought Bowling Corporation of America from closely held Charan Industries, adding 50 more bowling centers. In that same year it purchased 43 centers from American Recreation Centers. In 1997, the company acquired 15 centers from Conbow Corporation. By the start of 1999, AMF Bowling operated 421 centers in the United States, 46 in Australia, 37 in the United Kingdom, and 41 in eight other countries.

After emerging from bankruptcy in 2005, the company sold its centers in Australia and the United Kingdom in 2004 and 2005.

When it entered bankruptcy for the second time in 2012, the company observed, “In the 1960s and 70s… the typical bowler was a blue collar factory worker who belonged to one or more bowling leagues. Today’s typical bowler comes from a broader swath of the middle-class, and is unlikely to bowl in a league. Non-league bowlers bowl less often. And when they do bowl, they expect nicer amenities – automatic scoring, a variety of food and beverage options, and more attractive facilities.” As evidence of the shift, the company noted that, “according to the United States Bowling Congress, in 1998 the nation’s three largest league bowling organizations had over 4.1 million members. Just a decade later, membership had declined by 36% to 2.6 million.” To respond to the change in the average bowling customer, AMF constructed nine upscale 300 Centers with “high-end bars and lounges designed with a modern décor” that drew “significant business through group events.” However, the Great Recession of 2008 eroded AMF's ability to maintain and enhance its 262 existing US bowling centers and meant that people were bowling less often. At the time of the bankruptcy filing, AMF owned 27 bowling centers, leased 186 bowling centers through agreements with iStar Financial, and leased 57 under agreements with various other parties.

The 2013 merger brought the remaining US and Mexico centers under the control of a new entity, Bowlmor AMF (now known as Bowlero Corporation), making it the largest owner and operator of bowling centers in the United States. In the three years prior to the reorganization, AMF Bowling had closed nine owned US centers and 33 leased US centers due to "declining operating performance, unattractive options to renew leases, or an attractive sales opportunity." That left 257 AMF bowling centers in the United States and eight in Mexico passing to Bowlmor AMF at the time of the reorganization.

The American Machine and Foundry Pinspotter, developed in 1951 and first marketed in 1952, was one of the first fully automated pinsetters used in quantity in the bowling industry. When Commonwealth Ventures acquired the bowling center and bowling equipment divisions of AMF, Inc. to form AMF Bowling in 1985, its new company was already a major manufacturer of pinsetters, bowling pins, bowling balls, ball returns, lane surfaces, automatic scoring equipment, and other bowling equipment.

In 2005, AMF Bowling's equipment division and Italian-based Qubica Worldwide formed a 50/50 joint venture, QubicaAMF Worldwide. The partnership combined Qubica's expertise in automatic scoring technology and AMF Bowling's technology in lane equipment and pinsetters.

In 2007, a new company, 900 Global, purchased the rights to sell customized bowling balls with the AMF logo. In February 2014, the principals of bowling ball manufacturer Storm Products, Inc. made a significant investment in 900 Global.

With AMF Bowling's exit from bankruptcy in 2013, the 50% interest in the QubicaAMF joint venture was brought under the control of Bowlmor AMF (now known as Bowlero Corporation).

In December 2014, the Qubica original founders acquired the 50% interest held by Bowlmor AMF (Bowlero), bringing the manufacturing and marketing of AMF-branded bowling equipment under the full control of QubicaAMF Worldwide.

For the history of AMF bowling centres in Australia, see Zone Bowling Australia. In 2017 the company changed owners and was renamed Zone Bowling, or Xtreme Entertainment in New Zealand.

For the history of AMF bowling centres in the UK, see Hollywood Bowl Group.

Description AMF Bowling is a major operator of bowling centers and major manufacturer of bowling equipment. The AMF brand continues in use by the following companies: In the United States and Mexico, for the AMF Bowling centers owned or operated by Bowlero Corporation. Wikipedia

Our long-term business strategy is designed to: Create a nationally recognized chain of bowling centers in the U.S. and key international markets.

Leverage our brand and strong base of installed bowling equipment to grow sales of bowling products on a global basis. Become the employer of choice in our industry and in the communities in which we operate.

AMF Bowling, Inc. is the leading bowling company in the world. It manufactures a complete line of equipment including automated lanes, pins, balls, and shoes; operates more than 500 bowling centers in the United States and nine other countries; and also makes billiard tables and runs golfing facilities through subsidiaries. Expanding rapidly in the late 1990s, AMF suffered huge losses due to both the Asian economic downturn and the company's own overly ambitious business plan. The debt-ridden company has subsequently instituted cost-cutting and quality improvement measures in an effort to remain viable. Investment banking firm Goldman, Sachs & Co. owns a majority interest in AMF Bowling.

Beginnings

The roots of AMF Bowling date to March 16, 1900 when the American Machine Foundry Co. was formed by Moorehead Patterson. The New Jersey-based concern began as a manufacturer of equipment for the tobacco industry, and continued to ply its trade in this field over the next several decades. In the late 1930s an inventor named Fred Schmidt patented a method for picking up and re-setting bowling pins through the use of mechanical suction cups. Schmidt initially approached Brunswick Corporation, a leading bowling products manufacturer, but his appeal for financial backing was turned down. Brunswick itself had earlier attempted to create a pin-setting device, but had abandoned the concept as unworkable. Without backing, Schmidt sold the rights to his invention, at which point American Machine picked up the scent. They bought the patents, and then spent six years fine-tuning the idea. In 1946, at the American Bowling Congress's annual tournament in Buffalo, New York, the first fully automated 'Pinspotter' was unveiled. Although many in attendance were impressed, the two-ton prototype proved unreliable, and another five years were spent refining the machine.

Reintroduced in 1951, the perfected Pinspotter was greatly improved, reliable, and accurate. The ingenious device's operation began when a bowling ball rolled through the pins and off the end of the lane into a cushion. This triggered a suction cup-equipped rack to descend toward the pins that remained standing, lifting them out of the way while a bar dropped to the lane and raked away the fallen pins. Finally, the lifted pins were lowered back into place. The total cycle took less than 20 seconds. After the second and last ball of the bowling 'frame' had been rolled, the bar would drop again and remove any remaining pins, and a fresh set would be lowered from above for the next player. The Pinspotter would then reload the original ten pins into their rack. Other devices were created to complement the Pinspotter, including an under-lane ball return, the 'Pindicator' lighted pin indicator (to aid in scoring), and an electric-eye foul line violation detector.

The Pinspotter, which American Machine leased to alley owners for a fee of 12 cents per game, caused a revolution in the bowling industry. Prior to its availability, all pins had to be reset by hand, with stereotypically surly and unkempt teenage boys the usual workers, earning five to ten cents a game. Noisy, male-dominated bowling alleys had a reputation similar to billiard parlors as places of drinking, smoking, and gambling, where upstanding women and children dared not go. With the efficient new Pinspotter and its quieter, more user-friendly accouterments, alleys began to take on a less seedy ambience, and the bowling industry began to promote the sport heavily to families and women. Business picked up industry-wide in the wake of the Pinspotter, which was joined by the competing Brunswick 'Pinsetter' in 1956. By 1960 an estimated 90 percent of American lanes had been outfitted with automatic pin-setting machines. American Machine's headquarters, which had been in Manhattan for some time, were moved to Westbury, Long Island, that same year.

Diversification

In the wake of this success American Machine began to diversify away from the tobacco machinery it had previously concentrated on. The company's offerings came to include Hatteras brand boats, Head skis, and Harley-Davidson motorcycles, the latter acquired in 1968. Officially shortening its name in 1971, the company became known simply as AMF, Inc.

At the start of the 1980s, AMF's corporate makeup began changing again through divestiture of some of its leisure and consumer goods operations, including lawnmower, boat, and bicycle manufacturing. Harley-Davidson was also sold, purchased by its management in June 1981 for $81.5 million. At the same time, investments were made in a number of energy-related and scientific businesses. Though early results were positive, the changes soon backfired, with energy operations racking up $24 million in losses by 1983. With bowling still profitable, the company began a campaign of expansion in this area, spending nearly $100 million on acquisitions of bowling centers in 1984 and 1985.

By this time AMF chief Thomas York was becoming a controversial figure, both for his reputation as an autocrat and for the lavish perks he and other top executives enjoyed. In early 1985 the company's board applied pressure for change. One hundred staffers were laid off, the company moved to smaller quarters, and York even relinquished his limousine.

In April 1985 AMF became the subject of a hostile takeover bid from corporate raider Irwin L. Jacobs's Minstar, Inc. Despite adoption of a 'poison pill' clause and other tactics, the company was sold to Minstar in June for $563.8 million. AMF's president, all but one of the company's directors, and CEO York resigned or were fired shortly afterwards. By that fall, Jacobs was making plans to sell 13 of AMF's subsidiaries, which accounted for more than half of the company's revenues. These were primarily the company's energy, scientific products, and foodservice ventures, with the majority of the sporting and leisure goods companies being retained. Jacobs also fired most of the conglomerate's 400 corporate employees, leaving only a skeletal staff remaining.

Sale of Bowling Companies

In early 1986 several unsolicited offers came in to purchase the company's bowling division, which Jacobs had not put on the market. It was still AMF's most profitable business, making an impressive $13.6 million in profits on revenues of $109 million. However, an agreement was reached for its acquisition by New York investment firm Clayton & Dubilier, Inc. The deal fell through at the 11th hour, but then Commonwealth Venture Partners of Richmond, Virginia, stepped in with an identical offer of $223 million. Headed by William Goodwin, Jr., and Beverley Armstrong, the partners included executives of Major League Bowling Corp., which ran a chain of 22 southeastern U.S. bowling centers, and AMF-Union Machinery, which had been acquired from Minstar the previous year. AMF-Union President Frank Genovese was called on to run the newly independent company, which was renamed AMF Bowling Companies, Inc. At the time of its sale, AMF owned 110 bowling centers in the United States and abroad, and supplied almost half the pinsetting equipment worldwide.

Following the divestiture, AMF Bowling's headquarters were moved from Long Island, New York, to Richmond, home of its new owners. Over the next several years a successful campaign was launched to improve AMF's market share of bowling ball sales, with print and television ads for the company's Cobra and Sumo lines featuring real snakes and a Sumo wrestler rolling down a lane. AMF's AccuScore automatic scoring system was also being installed in increasing numbers of alleys nationwide. The computerized system displayed the results of each roll on a video screen above the lane, eliminating the need to rely on the traditional method of scoring by hand. During the early years of Commonwealth ownership several bowling center chains were also acquired, bringing the company's total holdings to 114 centers in the United States and 85 abroad.

By the 1980s the number of Americans who bowled regularly was declining as leisure time shrank, and new measures were needed to put the fizz back in the company's business. AMF Bowling Centers, Inc., the domestic bowling center arm, installed former PepsiCo executive Mark Willoughby as division head in 1991, and he rolled out a series of promotions intended to increase attendance among younger bowlers. Declaring that AMF would become 'The McDonald's of bowling,' Willoughby talked of building a chain of nationwide, lookalike centers and offering branded food from such names as Pizza Hut and Taco Bell.

Acquisitions continued in the early 1990s, with new subsidiaries including Bowler's Tape, Inc., billiard table maker Play Master-Renaissance, Inc., cue stick manufacturer Legendary Billiards, boating company Pompanette, Inc., industrial sewing company AMF Reece, Inc., the Ben Hogan Golf Co., and baking firm AMF Bakery Systems. In 1995 AMF became the largest bowling chain in the United States when it acquired control of Fair Lanes, Inc., owner of 106 centers. The purchase gave AMF more than 200 locations, easily topping Brunswick's 125. The company was continuing to seek new ways to draw in bowlers and, following Brunswick's example, introduced 'Xtreme' bowling which featured day-glo balls, ultraviolet lighting, and loud rock music to create an otherworldly environment.

In 1996 AMF's owners approached New York investment banking giant Goldman, Sachs & Co., seeking advice on selling the bowling operations. After examining AMF's business, the investment firm made an offer of $1.37 billion itself, which was accepted. A new entity, AMF Group, Inc., was formed which owned AMF Bowling Centers, Inc., AMF Bowling, Inc., and related businesses. Goldman, Sachs held 65 percent of the company. AMF Bowling's former owners, Michael Goodwin and Beverley Armstrong, caused a sensation when they distributed $50 million of their profits to 3,400 company employees, giving each the equivalent of 10 percent of his or her salary for every year they had been with the firm.

An Aggressive Expansion Plan

The new corporation, headed by former bowling center division head Douglas Stanard, set out on a course of rapid expansion, and by year's end had picked up the 50-center Bowling Corporation of America chain for $106 million and the 43-unit American Recreation Centers chain for $70 million. Plans were also announced to create a $5 million, 40-lane bowling and entertainment center in Manhattan's Chelsea Piers, and to build a series of centers in India. CEO Stanard was also ramping up the company's marketing and modernization efforts, which were intended to solidify the company's position as a familiar, consistent global brand.

In early 1997 a $40 million joint venture to build 20 bowling centers in Southeast Asia was launched with Hong Leong Corporation of Singapore. In the spring, another was formed with Playcenter of Sao Paolo, Brazil, to build as many as 39 centers in South America. Acquisitions of several small U.S. chains followed these moves, as did the purchase of Michael Jordan Golf Co., which operated several practice ranges. Gaining access to Jordan's services as an AMF spokesperson was a major part of the deal.

In November 1997 AMF Bowling Co. went public with an IPO on the New York Stock Exchange, offering 13.5 million shares at an opening price of $19.50. Goldman, Sachs retained more than 50 percent ownership. To celebrate, and to push the offering, the company set up a bowling lane in front of the exchange for six hours on opening day, during which time the price rose by more than 10 percent. Plans to acquire an additional 100 to 150 bowling centers during 1998 were announced soon thereafter.

Looking for a Strike, but Rolling a Gutter Ball Instead

By mid-1998 the corporation's numbers began to show signs of trouble. Earnings figures were considerably lower than expected, and revenues per existing center dropped by 3 percent instead of rising as anticipated. The most disappointing results came from the Bowling Products division, which reported downward revenue spikes of more than 20 percent two quarters in a row. This was attributed to the financial turmoil enveloping much of Southeast Asia, where AMF had been counting on a lucrative campaign of expansion. When the losses were calculated, they amounted to 60 cents per share for the second quarter, compared with a loss of 29 cents per share for the same quarter the previous year. The share price immediately tumbled, then continued to work its way down to less than $5 by year's end.

Although a few additional bowling centers were still being purchased, the company's expansion was put on hold, and a reorganization was effected, with the U.S. bowling center operation consolidated into six regional divisions from ten. The company also developed plans to move its Golden, Colorado lane-machine manufacturing and supply operation to Richmond. Some of the plant's 50 workers lost their jobs in the process.

When the third quarter results were announced in October, the company reported even bleaker figures. Losses for the period totaled $35.7 million, with bowling products sales down more than 36 percent. Soon after the information was released, CEO Stanard gave notice that he would be leaving by the end of the year.

His replacement was found in April 1999, when Roland C. Smith was recruited from Triarc Companies, where he had served as head of a restaurant group that ran the Arby's chain. Smith, a West Point graduate, announced that he wanted to learn the bowling business from the ground up, and did a stint as manager of a bowling center to get acquainted with his new employer.

In the fall of 1999, with losses continuing unabated, AMF downsized its bowling products operations. The company closed several plants and warehouses, and also began taking steps to recapitalize. Final figures for the year were not encouraging, as the company posted a net loss of $226 million on revenues of $733 million. By the summer of 2000, AMF stock was trading at less than a dollar per share, and a few months later it was delisted by the New York Stock Exchange, moving to the over-the-counter (OTC) market. Bankruptcy plans were reportedly under serious consideration after the company failed to make a September interest payment of $13.6 million. AMF now faced over $1.3 billion in debt, almost exactly the amount it had cost when purchased some five years earlier.

Though it was a leading bowling equipment manufacturer and the top operator of bowling centers around the world, debt-ridden AMF faced a difficult business environment and appeared down for the count. While it was still possible to prevail amidst these circumstances, the near future looked bleak, with only the courage and vision of the company's management and a much hoped for turnaround in the world bowling products market likely to bring the company back from the brink.

Principal Subsidiaries: AMF Group Holdings Inc.; AMF Bowling Worldwide, Inc; AMF Bowling Holdings Inc.; AMF Bowling Centers Holdings; AMF Bowling Products, Inc.; AMF Bowling Products International, B.V. (Netherlands); AMF Bowling India Private Ltd. (India); AMF Bowling Poland Sp.zo.o. (Poland); AMF Worldwide Bowling Centers Holdings Inc.; AMF Bowling Centers, Inc.; AMF Beverage Company of Oregon, Inc.; AMF Beverage Company of W. VA, Inc.; Bush River Corporation; King Louie Lenexa, Inc.; 300, Inc.; The 400 Club, Inc.; American Recreation Centers, Inc.; Michael Jordan Golf Company, Inc.; MJG-O'Hare, Inc.; Michael Jordan Golf Youth Program, Inc.; AMF Catering Services Pty. Ltd. (New South Wales); AMF Bowling Centers (Canada) International Inc.; AMF Bowling Centers (Hong Kong) International Inc.; AMF Bowling Centers International Inc.; AMF BCO-UK One, Inc.; AMF BCO-UK Two, Inc.; AMF BCO-France One, Inc.; AMF BCO-France Two, Inc.; AMF Bowling Centers Spain Inc.; AMF Bowling Mexico Holding, Inc.; AMF International BCO Holdings B.V. (Netherlands); AMF Bowling (U.K.); Worthing North Properties, Ltd. (U.K.); AMF Bowling France SNC (France); AMF Bowling de Paris SNC (France); AMF Bowling de Lyon la Part Dieu SNC (France); Boliches AMF y Compania (Mexico); Operadora Mexicano de Boliches, SA (Mexico); Promotora de Boliches SA de CV (Mexico); Inmuebles Minerva, SA (Mexico); Inmuebles Obispado SA (Mexico); Boliches Mexicanos SA (Mexico).

Principal Competitors: Bowl America, Inc.; Brunswick Corporation; Dave and Buster's, Inc.; Haw Par Corp. Ltd.; Jillian's Entertainment Holdings, Inc.