(Bloomberg) -- Topgolf Callaway Brands Corp. is conducting a strategic review of its Topgolf driving-range chain, including a potential spinoff, as it struggles to attract enough golfers to its venues.
“We have been disappointed in our stock performance for some time, as well as the more recent same venue sales performance,” Chief Executive Officer Chip Brewer said in a statement on Wednesday. “As a result, we are in the process of conducting a full strategic review of Topgolf.”
Brewer said he has brought on external advisers and will assess strategies to revive Topgolf organically, while considering options to split the business from Callaway, which makes golf clubs and other equipment.
The company’s shares rose 8.4% at 4:33 p.m. in late trading in New York.
Callaway acquired Topgolf in 2020 in a deal that valued the business at about $2 billion. Executives said at the time that they hoped to attract new customers and add more digital components to the sport to become the “Peloton of golf.”
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