Gander Mountain preparing to file for bankruptcy this month

[HD]

Gander Mountain preparing to file for bankruptcy this month

By Reuters Media on Feb 10, 2017 at 3:20 p.m.



St. Paul-based hunting and fishing chain Gander Mountain is preparing to file for bankruptcy as early as this month, after an aggressive effort to expand its store base failed to pull in new customers, according to people familiar with the matter.

Gander Mountain is working with financial advisory firm Lighthouse Management Group and law firm Fredrikson & Byron PA as it gets ready to file for bankruptcy, the people said this week.

The sources asked not to be identified because the matter is confidential. Gander Mountain and Lighthouse Management declined to comment this week, while a spokeswoman for Fredrikson did not return a request for comment made on Wednesday, Feb. 8.

Gander Mountain, which bills itself as America's firearms superstore, has faced challenges capitalizing on a booming gun market. The Federal Bureau of Investigation carried out a record 27.5 million background checks on people seeking to buy guns in 2016, up 19 percent from the year before.

Gander also has stiff competition from rivals like Bass Pro Shops and Cabela's, which have been revamping their stores to attract customers with restaurants and shooting activities.

Bass Pro agreed last year to buy Cabela's for $5.5 billion, potentially putting more pressure on Gander Mountain, though the deal has to overcome major hurdles to close, including antitrust concerns.

Gander Mountain was taken private in 2010 by Gratco, a holding company controlled by Gander Chairman and Chief Executive David Pratt, and Holiday Stationstores, a gas-station retail operation controlled by Minnesota's Erickson family.

Gander Mountain confronts financial trouble after an aggressive expansion across the United States for a total of about 160 stores, with nearly 60 new outposts opened or announced since 2012.

The company has a $30 million loan, and revolving credit lines for $25 million and $500 million, according to Thomson Reuters data. It is not clear how much money in the credit lines Gander Mountain has yet to draw down on.

Gander Mountain would be the fifth outdoor retailer to file for bankruptcy in the last 12 months, following sports retailers such as Sports Chalet and Sports Authority, which both sought court protection from their creditors.

Gander Mountain wanted to address some of its challenges by exploring a sale last year of its online and catalog boating business called Overton's, but was unable to find a buyer at agreeable terms, according to the sources.

[Rebel SS]

Well, with their high prices, lack of any knowledgable help....or any help at all...doesn't surprise me. 

[glenn57]

me either......haven't bought anything there in a lot of years!!!!!!!!

[mike89]

I'll 3rd that, can't even remember the last time I was there, many many years ago.

[Rebel SS]

I'll 3rd that, can't even remember the last time I was there, many many years ago.

You can't...ya half-wit!!! 

[mike89]

ok I agree!!!  is that "more" better??? sleazy-422.gif sleazy-422.gif

[LPS]

My opinion for what it's worth.  I am a very small manufacturer of ice fishing products.  Gander used to buy a couple pallets of my stuff each year.  About 10 years ago their head buyer retired it seems.  He was a great guy.  Since then they haven't been buying my products but kept saying next year we will restock with it.  All my friends and family members shopped at Gander during that time as we were proud to be in their stores.  And we told others about it.  Bought most of our Christmas presents there etc.  You know how word of mouth travels.  Well after they stopped handling our stuff I had different Gander stores tell me that they wanted my products but couldn't get Corporate to let them order it on their own.  They went with overseas junk that made them more profit.  SO  now they have allienated a big group of people that now have no interest in shopping in their stores.  Like I said I am a small minnow in the pond but multiply that by 100 times in each area and you see what happens. They didn't give a rip about local products anymore like Cabelas does.  Sometimes it is the little things that end up making a difference.  Too bad.....

[mike89]

well said LPS, and word of mouth can your best or worse advertising I think!!

[Bobberineyes]

Yep that store is not the same.  That use to be my first store on the list to hit on the weekend stops and it was always hopping, now I go in about once a month.  CORPORATE is the key word in LPS post . Way too many dumb decisions come from up above in business  ( even at my work place) that make an impact on sales on the long run. To many people sitting in an office dreaming up new rules, sales ideas that just doesn't make sense.  People talk old school now and then, well old school got it done and done right and people came back. Gander bought out berger brothers here along time ago, maybe they should snatch up a store..

[mike89]

Hey Bobber, that's where I started too, Berger Brs.   man that was a long time ago!!  egod!!!

[HD]

I got $250 in Gander gift cards...better hurry up and get a new gun before they shut down... 

[cookie]

so lps who does carry your products? tried to find them on line and never got anywhere

[LPS]

Go to the links page Cookie.  That is a list of the dealers.  www.lindellicerigs.com  Cabelas handles them and Clancy's Outdoors sells hundreds of them.  Some years L&M buys from me but didn't this year.  Whenever you are there ask them for them.   

[LPS]

Reed's has them too. 

[cookie]

goofy I can not find them on line ?

[LPS]

I will message you Cookie.

[Rebel SS]

I sure hope they have a huge blowout sale on guns an ammo....

[LPS]

Now that's a thought,  maybe they will have a big sale.....

[mike89]

really don't need anything, but I'm sure I could find something at a big sale.

[HD]

Forest Lake has a store wide clearance sale going on now..... 

[snow1]

Well,if the going under sale is anything lijke when they closed select stores over the years this will be a money saving's event! A guy can never have enough ammo or guns's nowa days.

[Rebel SS]

I just got a "Friends and family" storewide 20% off everything card in the mail.....

[snow1]

I suspect the savings will get even better as they liquid date they're assets.