Gander Mountain Announces Liquidation After Bankruptcy
The largest retailer of outdoor recreational goods in America, Gander Mountain Company, is going to liquidate its assets after failing in the restructuring process post its bankruptcy.
In March, the company filed for Chapter 11 bankruptcy protection and started the formal process of restructuring. Initially, the company planned to close only 32 of its most underperforming stores in 11 states. The move has led to more than 1,280 full- and part-time employees facing layoffs.
The 57-year-old company has recently announced that it will be closing down most of its 126 locations across the country and liquidating all of its inventory, including firearms, ammunition, camping equipment, and boating gear. Management only took the hard decision to go for liquidation after having failed to revive the business through restructuring.
In the meantime, the management team has also been seeking potential buyers for its brands. In May, Illinois-based Camping World Holdings Inc—a retailer of camping supplies and recreational vehicles—came forward to buy the Gander Mountain and Overton’s brands. (Source: Ibid.)
Overton’s, a subsidiary of Gander Mountain, sells water recreation supplies, including boats and watersports gear.
Camping World has promised to keep some of the profitable Gander Mountain stores open, however it may cut down on some of the inventory.
Gander Mountain, like most brick-and-mortar retailers, owes its bankruptcy woes to big online retailers like Amazon.com, Inc. America’s biggest brick-and-mortar retailers are struggling with dwindling sales as a growing number of Americans turn towards online shopping.
At the same time, Gander Mountain has also felt competitive pressure from big-box retailers like Wal-Mart Stores Inc and Target Corporation that have started cutting into its business by offering similar products.
Consequently, Gander Mountain has been witnessing more unsold inventory piling up on its shelves while its in-store traffic keeps falling.
Gander Mountain’s bankruptcy follows half a dozen other bankruptcies in the sports retail industry. Prior to Gander Mountain, MC Sports, Sports Authority, Golfsmith, and Sports Chalet, Inc. have all gone out of business in the last year-and-a-half, causing thousands of layoffs across the states. (Source: USA Today, op cit.)
“Gander Mountain latest sports retailer to fail,” USA Today, March 13, 2017
“Gander Mountain files bankruptcy, closing all locations”, WSLS10, May 6, 2017.