Topgolf CEO Artie Starrs resigned this week to take a position at an undisclosed company, delaying its spinoff from parent Topgolf Callaway Brands until sometime next year.
Starrs, the former Pizza Hut executive who jumped to Topgolf in 2021, will remain with Topgolf through September “to assist with an orderly transition,” the company said.
“Artie’s departure does not affect our strategic direction or commitment to separating Topgolf, and we are still pursuing a spinoff or sale of Topgolf,” Chip Brewer, CEO of Topgolf Callaway Brands, said in a statement. “Given this development, it is likely that a spinoff transaction would not occur until 2026, after a new CEO is in place.”
Nevertheless, the departure of Starrs throws a wrench into the Topgolf spinoff plans that have been in place for nearly a year.
Topgolf, like many brands in the so-called eatertainment space, has struggled with weak sales coming out of the pandemic, as consumers have cut back on spending.
Callaway Brands, the golf equipment maker, acquired Topgolf in 2020. A year later it renamed its company Topgolf Callaway Brands, thrilled with the performance of the chain it had acquired.
But by 2024 it was pondering a spinoff as Topgolf’s sales turned negative. The chain earlier this year laid off workers and started taking steps to get customers into its venues more often.
The chain is rethinking its value proposition. The company created a family-oriented “Sunday Funday” and “Topgolf Nights,” which is aimed at a younger, late-night crowd. It is also offering drink discounts on weeknights.
Without offering details, Brewer hinted that the efforts were paying off. “We are pleased with Topgolf’s second quarter financial results and improving same-venue sales trends, which reflect the significant actions taken this year,” he said. The company reports earnings next week.
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