Embattled sporting goods retailer Gander Mountain was scooped up by Camping World Holdings last week for quite a bargain, but despite the acquisition, it appears that as many as half of Gander Mountain’s store locations will close down.
Camping World, which specializes in RV sales, purchased the bankrupt chain at an auction for around $38 million. That purchase included all 162 retail locations, its corporate operations, its intellectual property rights, its e-commerce presence and its Overton’s boating subsidiary.
When Gander Mountain first announced that it would be filing for bankruptcy, it said that it would close 32 stores in 11 states and lay off a workforce of 1,280 full-time and part-time employees. But now with Camping World management at the helm, those numbers will grow.
“While we are obligated to assume a minimum of 17 leases, our destination rights will allow us to operate stores and retain employees at a number to maximize profitability,” said Camping World CEO Marcus Lemonis.
Lemonis told the Wall Street Journal that at least half the stores will be shut down. He did not go into detail about which stores would get the ax and which would continue to operate. Though it appears he’s making those announcements randomly on Twitter.
— Marcus Lemonis (@marcuslemonis) May 5, 2017
“The liquidation of the existing Gander Mountain inventory will allow us to start with a clean slate of what we consider the appropriate mix and levels of inventory,” Lemonis said in a statement, “including the addition of Camping World and Overton offerings where appropriate.”
The liquidation of Gander Mountain could generate up to $430 million or about 91 percent of what it paid for its current inventory, according to Bloomberg News. Investment firm Gordon Brothers and Hilco Merchant Resources will oversee the liquidation.
In 2016, Camping World generated $203 million in profit against a total of $3.5 billion in sales. The company is traded on the New York Stock Exchange.
Camping World is throwing a huge liquidation sale. See info below:
What’s happening at Gander Mountain?
Gander Mountain is the nation’s largest retail network of outdoor specialty stores for hunting, fishing, camping, marine, apparel, footwear, shooting sports, and outdoor lifestyle. Gander Mountain has spent over 50 years igniting people’s passion for the outdoors. In every natural convention, from twisting trails to surging streams, we’ve challenged ourselves to discover something valuable to pass along to each of our customers. We are committed to staying the go-to place for outdoor enthusiasts who are constantly in search of great, high-quality gear to help them make more great moments in the outdoors.
Better Gear. Better Performance. Better Service. Better Value. All at Gander Mountain.
WE LIVE OUTDOORS.
In March 2017, Gander Mountain filed for voluntary Chapter 11 Bankruptcy and began the work to restructure the company and remain a part of the outdoor community. In May 2017, Gander Mountain and Overton’s were acquired by Camping World Holdings, Inc.
Camping World Holdings, Inc. is the only provider of a comprehensive portfolio of services, protection plans, products, and resources for recreational vehicle (“RV”) enthusiasts. Through its two iconic brands, Camping World and Good Sam, the company offers new and used RVs for sale, vehicle service, and maintenance along with more than 10,000 products and services through its retail locations and membership clubs. Good Sam branded offerings provide the industry’s broadest and deepest range of services, protection plans, products, and resources. The Camping World brand operates the largest national network of RV-centric retail locations in the United States through over 125 retail locations in 36 states and an e-commerce platform. With both brands founded in 1966, product and service offerings are based on 50 years of experience and customer feedback from RV enthusiasts.
What does this mean for Gander Mountain?
The announcement of Camping World acquiring the Gander Mountain brand means that we will continue to be a part of the specialty outdoor market. Many of our customers that depend on us for their recreational lifestyle will continue to enjoy the great products and services that have been the company’s hallmark throughout its history. We at Gander Mountain believe that our best days are still ahead of us and we ask that you join us in welcoming and supporting this successful transition. Camping World shares the same passion for the outdoors as Gander Mountain and our customers, making for a great melding of businesses and outdoor communities.
Welcome to the team, Camping World! We are excited for the future and the infinite possibilities ahead of us to serve the outdoor community!
Check back in Fall 2017 for more details!