Gander Mountain Co. might live on post-bankruptcy with the approval of a $37 million asset sale to another outdoor-minded retailer.
Camping World, which on Friday picked up a majority of the outdoor rec retailer’s assets for about $37.8 million through bankruptcy auction held late last month, plans to continue operating “at least” 70 of Gander Mountain’s roughly 160 locations.
Camping World chairman and chief executive officer Marcus Lemonis said Monday that having a chance to “review the stores in more detail” after the successful bid set up the operational plans, but the goal of keeping 70 stores “is subject to, among other things, our ability to negotiate lease terms with landlords on terms acceptable to us.”
Meanwhile, a liquidation sale of Gander Mountain inventory is ongoing with oversight and management from a joint venture between Tiger Capital Group and Great American Group, which will share a portion of the sales with the retailer.
“The current liquidation of the existing Gander Mountain inventory will allow us to start with a clean slate of what we consider the appropriate mix and level of inventory, including the addition of Camping World and Overton’s offerings where appropriate,” Lemonis said.
Overton is a water sports retailer that Gander Mountain acquired in 2007 through an issuance of $24 million in common stock and a $40 million loan.
After making the successful bid for the assets, Lemonis said Gander Mountain is a “perfect compliment” to the Camping World business and its customers.
Gander Mountain’s bankruptcy process was relatively quick, having only filed Chapter 11 in March.
It’s initial bankruptcy disclosure listed estimated both assets and liabilities in the range of $500 million to $1 billion. The business included about 160 stores in 26 states, e-commerce and a catalogue operation.
The company cited challenging traffic patterns and the growing popularity of e-commerce as factors behind the bankruptcy, and also noted that a number of vendors had become competitors with their own direct-to-consumer offerings.
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