Sports and outdoor retail giant Gander Mountain has responded to this month’s rumors that the company is facing bankruptcy. Earlier this month Reuters reported on unnamed sources that the company is gearing up to file for bankruptcy in the coming weeks.
“Gander Mountain is working with financial advisory firm Lighthouse Management Group, Inc. and law firm Fredrikson & Byron PA as it gets ready to file for bankruptcy,” stated the report.
“Like most retailers, we are subject to normal economic cycles, changes in our industry and shifts in consumer demand that require us to adapt our business accordingly,” said Gander Mountain in response. “It is this constant adaptation and desire to offer our customers the best selection, best value and best service that has been our hallmark for generations.”
According to insiders, the company had problems attracting new customers even with the recent gun-buying frenzy. The hunting and fishing superstore not only faces stiff competition from other sporting outlets but like all retailers, online vendors as well.
For shoppers looking to buy guns, Gander Mountain has a reputation for hit-or-miss pricing. The company buys and sells used guns in addition to selling new firearms with prices ranging across the board. In the case of over-priced guns Gander Mountain risks losing business to competition. And in instances of under-priced guns the company risks losing profits.
Of course firearms are just a part of the company’s business. Gander Mountain is aware of this and has turned to a consulting firm to help them through their tough times.
“To assist in this process, we have retained Houlihan Lokey as independent advisors and we are confident that the outcome of the review will identify the right go-forward strategy,” continued the statement. “In the meantime, our Gander Mountain stores and [our website] remain the place to go for all of our customers’ outdoor adventure needs.”
The statement explains that they are working on a long-term strategy to stay in business. Hopefully this will alleviate some bankruptcy concerns.
The company’s downturn follows their recent large nation-wide expansion. Today Gander Mountain has 160 locations in 28 states, with around 60 new stores added since 2012.
Reuters reports that Gander Mountain was looking to sell some of their interests but was unable to find a buyer. The company was looking to sell Overton’s, a boating and marine specialty business.