Golfsmith, a specialty sports store that started in a New Jersey home almost 50 years ago and became the world's largest golf retailer, has declared bankruptcy.

The Texas-based retailer filed for Chapter 11 protections Wednesday with hopes to reorganize and restructure to make the business more attractive for potential buyers.

VIP Party Golfsmith International Grand Opening on June 6, 2013 in New York City.

The company, which was founded in Edison in 1967, is expected to reduce its retail footprint in the U.S. as it struggles with millions of dollars of debt. Currently, the chain has more than 2,300 employees across its 109 American locations and 55 stores in Canada.

Golfsmith has four New Jersey locations in Bridgewater, East Brunswick, Moorestown and West Paterson.

If the retailer fails to find a buyer, it will liquidate its assets, according to its court filing in Delaware Bankruptcy court.

Golfsmith International Holdings Inc. has already found a buyer for its Canadian stores under the banner of Golf Town. Golfsmith merged Golf Town in 2012. The sale will help Golfsmith pay down its debts, according to the company.

"Today represents a significant step forward for the long term-viability of the Golf Town and Golfsmith businesses," David Roussy, the chief executive officer of the company, said in a press release.

The company has proposed a mid-October deadline for bids on the U.S. retailer to prepare for the holiday rush, according to the bankruptcy filing.

Golfsmith was founded by Carl and Barbara Paul in 1967 as a specialty club and repair shop. The business was moved to Austin in 1970, where it sold golf supplies through mail order catalogs for the next 20 years. The company went public in 1995 and expanded to a number of locations throughout the U.S.

Craig McCarthy may be reached at CMcCarthy@njadvancemedia.com. Follow him on Twitter @createcraig. Find NJ.com on Facebook.