Gander Mountain Files for Chapter 11 bankruptcy

by San Antonio Attorney

Gander Mountain, one of the top outdoor retailers in the United States, filed for Chapter 11 bankruptcy protection on March 11, 2017.

The retailer, which is based in Saint Paul, Minnesota, earlier addressed bankruptcy rumors by saying that it is making a move to preserve the company’s value.

Gander pinned its economic woes to shifts in consumer activities.  More consumers are npw using the Internet to purchase items, resulting in the underperformance of brick-and-mortar stores.  The company added that surplus stock hindered attempts to develop a sustainable business.

Based on court papers filed, inventory quantities remaining from 2016 fiscal year were priced at $583 million.  The preliminary petition provides assets and debts within the range of $500 million to $1 billion.

For the fiscal year ended January 28, the outdoor retailer posted $1.323 billion in yearly revenue, of which $1.137 billion came from retail stores, and an additional $185 million from catalog and online sales.

The company’s self-assessment concluded that its rapid growth triggered its fiscal problems.  Gander aggressively expanded the number of its store locations, which has totaled to 160.

As part of its bankruptcy plans, the company said that it will be shuttering 32 stores that are not performing as well as they expected.

Court documents reveal that Gander owes $424.5 million in secured debt, in which $380 million is payable to lenders.  Gander has 10,001 to 25,000 creditors.

The retailers owes $48.2 million to 20 of its largest creditors, and 69% of that amount is owed to firearms businesses.

Firearm manufacturers include Vista Outdoor, Sig Sauer, Remington, Benelli USA, and Smith & Wesson.

Vendors include Ellett Brothers, Bill Hicks & Co.  and Sports South Inc.

Accessories makers include Vortex Optics, Liberty Safe & Security, and Magpul Industries.

Gander claims it presently has parties interested to finance the business so that it won’t have to sell off its assets.  The bidding is expected to close by May 15.

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