AMF Bowling: A History of Innovation and Industry Leadership

AMF Bowling stands as a prominent figure in the world of bowling, recognized as a leading company in the industry. From its origins in manufacturing equipment for the tobacco industry to its current status as a global bowling enterprise, AMF has played a significant role in shaping the sport and its accessibility to a broad audience.

The Early Years: From Tobacco to Bowling

The roots of AMF Bowling trace back to March 16, 1900, with the establishment of the American Machine and Foundry Co. by Moorehead Patterson. Initially focused on producing equipment for the tobacco industry, the New Jersey-based company maintained its presence in this sector for several decades. It was not until the late 1930s that AMF's path intersected with the world of bowling.

An inventor named Fred Schmidt developed a groundbreaking method for automatically picking up and resetting bowling pins using mechanical suction cups. Schmidt initially sought financial backing from Brunswick Corporation, a leading manufacturer of bowling products, but his proposal was rejected. Undeterred, Schmidt sold the rights to his invention, which caught the attention of American Machine.

The Pinspotter Revolution

American Machine acquired Schmidt's patents and dedicated six years to refining the concept of automated pinsetting. In 1946, at the American Bowling Congress's annual tournament in Buffalo, New York, the first fully automated "Pinspotter" was unveiled. While the prototype impressed many attendees, its unreliability necessitated further development.

In 1951, the perfected Pinspotter was reintroduced to the market. This improved machine boasted reliability and accuracy, revolutionizing the bowling industry. The Pinspotter's ingenious operation involved a suction cup-equipped rack that descended to lift standing pins out of the way while a bar swept away fallen pins. The lifted pins were then lowered back into place, completing the cycle in less than 20 seconds. The Pinspotter also reloaded the original ten pins into their rack. Additional devices, such as an under-lane ball return, the "Pindicator" lighted pin indicator, and an electric-eye foul line violation detector, complemented the Pinspotter.

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American Machine leased the Pinspotter to alley owners for a fee of 12 cents per game, transforming the bowling experience. Before the Pinspotter, pins had to be reset manually, typically by teenage boys earning a meager five to ten cents per game. Bowling alleys, often perceived as male-dominated spaces associated with drinking, smoking, and gambling, gained a reputation that deterred women and children.

With the advent of the Pinspotter, the bowling industry began to actively promote the sport to families and women. The industry experienced a surge in business, further fueled by the introduction of the competing Brunswick "Pinsetter" in 1956. By 1960, approximately 90 percent of American lanes had been equipped with automatic pin-setting machines. In the same year, American Machine's headquarters relocated from Manhattan to Westbury, Long Island.

Diversification and Expansion

Following the success of the Pinspotter, American Machine embarked on a path of diversification, venturing beyond its traditional focus on tobacco machinery. The company's portfolio expanded to include Hatteras brand boats, Head skis, and Harley-Davidson motorcycles, acquired in 1968. Harley-Davidson was later sold to its management in June 1981 for $81.5 million. Investments were also made in energy-related and scientific businesses.

While initial results appeared promising, the diversification efforts soon encountered challenges, with energy operations incurring $24 million in losses by 1983. Despite these setbacks, bowling remained a profitable venture, prompting the company to pursue expansion in this area. Nearly $100 million was invested in acquiring bowling centers in 1984 and 1985.

During this period, AMF chief Thomas York faced increasing scrutiny due to his autocratic leadership style and the lavish perks enjoyed by top executives. In early 1985, the company's board exerted pressure for change, resulting in staff layoffs, a move to smaller corporate quarters, and the relinquishment of York's limousine.

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Takeover and Divestiture

In April 1985, AMF became the target of a hostile takeover bid from corporate raider Irwin L. Jacobs. Despite adopting a "poison pill" clause and other defensive tactics, the company was ultimately sold to Minstar in June for $563.8 million. Following the acquisition, AMF's president, all but one of the company's directors, and CEO York resigned or were terminated.

By the fall of 1985, Jacobs had outlined plans to sell 13 of AMF's subsidiaries, which accounted for over half of the company's revenues. These divestitures primarily involved the company's energy, scientific products, and foodservice ventures, while the majority of sporting and leisure goods companies were retained. Jacobs also reduced the corporate workforce from 400 employees to a skeletal staff.

In early 1986, unsolicited offers emerged for the company's bowling division, which Jacobs had not initially intended to sell. The bowling division remained AMF's most profitable business, generating $13.6 million in profits on revenues of $109 million. An initial deal fell through at the last minute, but Commonwealth Venture Partners of Richmond, Virginia, stepped in with an identical offer of $223 million.

The sale to Commonwealth Venture Partners encompassed AMF Bowling Products Group, AMF International, AMF Automatic Machinery, 110 AMF-owned bowling centers, and AMF-Union Machinery, which had been acquired from Minstar the previous year. At the time of the sale, AMF owned 110 bowling centers in the United States and abroad and supplied nearly half of the world's pinsetting equipment.

Following the divestiture, AMF Bowling's headquarters relocated from Long Island, New York, to Richmond, Virginia, the home of its new owners. A successful campaign was launched to enhance AMF's market share in bowling ball sales, with print and television advertisements 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 installed in an increasing number of alleys nationwide.

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During the early years of Commonwealth ownership, several bowling center chains were acquired, bringing the company's total holdings to 114 centers in the United States and 85 abroad.

Adapting to Changing Times

By the 1980s, the number of Americans who bowled regularly was declining, necessitating new strategies to revitalize the company's business. AMF focused on leveraging its brand and installed bowling equipment to grow sales of bowling products globally.

In 1996, AMF's owners sought advice from New York investment banking giant Goldman, Sachs & Co. regarding the potential sale of the bowling operations. After evaluating AMF's business, Goldman, Sachs made an offer of $1.37 billion, which was accepted. Goldman, Sachs held a 65 percent stake in the company. AMF Bowling's former owners, Michael Goodwin and Beverley Armstrong, distributed $50 million of their profits to 3,400 company employees, providing each with the equivalent of 10 percent of their salary for every year of service.

Aggressive Expansion and Subsequent Challenges

Under the leadership of former bowling center division head Douglas Stanard, the new corporation embarked on a course of rapid expansion. By the end of the year, the company had acquired 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 develop a $5 million, 40-lane bowling and entertainment center in Manhattan's Chelsea Piers and to construct a series of centers in India. CEO Stanard also intensified the company's marketing and modernization efforts, aiming to solidify AMF's position as a familiar, consistent global brand.

In early 1997, a $40 million joint venture was launched with Hong Leong Corporation of Singapore to build 20 bowling centers in Southeast Asia. In the spring, another joint venture was formed with Playcenter of Sao Paolo, Brazil, to build up to 39 centers in South America. The company also acquired several bowling center chains and Michael Jordan Golf Co., gaining access to Jordan's services as an AMF spokesperson.

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 over 50 percent ownership. To celebrate and promote 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 over 10 percent. Plans to acquire an additional 100 to 150 bowling centers during 1998 were announced shortly thereafter.

By mid-1998, the corporation's financial performance began to falter. Earnings figures fell short of expectations, and revenues per existing center declined by 3 percent instead of rising as anticipated. The Bowling Products division experienced the most disappointing results, with revenue spikes dropping by over 20 percent for two consecutive quarters. This was attributed to the financial turmoil in Southeast Asia, where AMF had been counting on a lucrative expansion campaign. The losses 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.

In response to these challenges, AMF initiated cost-cutting measures, including consolidating its bowling center operation 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.

The third quarter results, announced in October, revealed even more dismal figures. Losses for the period totaled $35.7 million, with bowling products sales down over 36 percent. Shortly after the information was released, CEO Stanard announced his departure by the end of the year.

Navigating Bankruptcy and Restructuring

With losses continuing unabated, AMF downsized its bowling products operations in the fall of 1999. The company closed several plants and warehouses and began taking steps to recapitalize. Final figures for the year revealed 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 it was subsequently 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 faced over $1.3 billion in debt, nearly the same amount it had cost when purchased five years earlier.

Despite its position as a leading bowling equipment manufacturer and operator of bowling centers worldwide, debt-ridden AMF faced a challenging business environment and appeared to be struggling.

AMF Bowling entered Chapter 11 bankruptcy for the first time in April 2001, citing overextension through the acquisition of 260 additional bowling centers and a decrease in demand for bowling products.

Private equity firm Code Hennessy & Simmons acquired the company in 2004 for $670 million to bring it out of bankruptcy. The transaction was partially financed by a $254 million sale and lease-back of 186 bowling centers to iStar Financial.

AMF Bowling entered Chapter 11 bankruptcy for the second time in November 2012, citing the challenge of adapting to the changing demographics and preferences of the average bowling customer.

Merger and Transformation into Bowlero Corporation

In 2013, AMF Bowling emerged from bankruptcy through its merger with Strike Holdings LLC, the operator of Bowlmor Lanes. This merger brought all remaining bowling centers and a 50% interest in the QubicaAMF joint venture under the control of Bowlmor AMF, now known as Bowlero Corporation.

The formation of AMF Bowling in 1986 involved Commonwealth Ventures acquiring 110 AMF-owned bowling centers in the United States and abroad, as well as 22 centers owned by Major League Bowling Corp. Commonwealth then invested nearly $500 million in revitalizing the bowling center business, focusing on expanding the appeal of bowling to both league and casual bowlers.

In 1991, former PepsiCo executive Mark Willoughby was appointed to head the bowling center business. By 1995, the company had become the largest owner of bowling centers in the US through the acquisition of Fair Lanes.

When Goldman Sachs acquired the company in 1996, its strategy centered on renovating purchased properties and creating a national chain of amusement complexes. That year, the company acquired Bowling Corporation of America, adding 50 more bowling centers.

The company observed that the typical bowler had shifted from a blue-collar factory worker to a broader swath of the middle class, with non-league bowlers bowling less often and expecting nicer amenities. To address this shift, AMF constructed nine upscale 300 Centers with high-end bars and lounges.

The Great Recession of 2008 hindered AMF's ability to maintain and enhance its 262 existing US bowling centers, resulting in a decline in bowling frequency.

The 2013 merger brought the remaining US and Mexico centers under the control of 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 closed nine owned US centers and 33 leased US centers due to declining operating performance, unfavorable lease renewal options, or attractive sales opportunities.

Innovation and Equipment

The American Machine and Foundry Pinspotter, developed in 1951 and first marketed in 1952, was one of the first fully automated pinspotters used extensively in the bowling industry.

In 2005, AMF Bowling's equipment division and Italian-based Qubica Worldwide formed a 50/50 joint venture, QubicaAMF Worldwide.

In 2007, a new company, 900 Global, acquired the rights to sell customized bowling balls with the AMF logo.

AMF's Diverse Product Portfolio

Over the years, AMF produced a wide range of products, including:

Roadmaster bicycles
Harley-Davidson motorcycles (1969â1981)
Head snow skis and tennis racquets (1969â1985)
Snowmobiles
Lawn and garden equipment
Gymnastics equipment (later spun off to form American Athletic (AAI))
Exercycles and exercise equipment

Key Dates in AMF's History

1900: American Machine Foundry Co. founded
1946: First Pinspotter unveiled
1951: Perfected Pinspotter reintroduced
1960: Headquarters moved to Westbury, Long Island
1968: Acquired Harley-Davidson motorcycles
1981: Harley-Davidson sold
1985: Sold to Minstar
1986: Bowling division sold to Commonwealth Venture Partners
1996: Goldman Sachs acquired the company
1997: AMF Bowling Co. went public
2001: Entered Chapter 11 bankruptcy
2004: Acquired by Code Hennessy & Simmons
2012: Entered Chapter 11 bankruptcy for the second time
2013: Merged with Strike Holdings LLC to form Bowlero Corporation

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