Gander Mountain is continuing down the same path that we have seen other industry giants take lately. The destination is not a desirable one either. Gander Mountain is preparing to file for bankruptcy likely by the end of this month. Sports Authority and Sports Chalet have both filed for bankruptcy this past year as well.
The Minneapolis-based company is actively working with Lighthouse Management Group, Inc. as a financial advisor alongside the law firm Fredrikson & Byron PA. It has not been publicly stated or known as to what type of bankruptcy they will be filing for.
Many stores throughout the US have been running “clearance sales” that most consumers thought to be for making room for new inventory. These clearance sales likely have another purpose.
Reuters was one of the first news sources to break this story and had this to say:
“U.S. hunting and fishing chain Gander Mountain Co 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.”
With roughly 160 total stores throughout the US, Gander Mountain and all of its employees have a lot to lose. They currently have $525 million in credit lines as well as a $30 million dollar loan in play. Exactly how deep they have dipped into that credit line is not for certain.
As other companies like Cabela’s and Bass Pro Shops have looked to align themselves together to become stronger in a flat shooting sports market, Gander Mountain appears to be on their way out.