Privately-held Gander Mountain Company and Overton’s filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Minnesota, lead case number 17-30673. The Company, which operates a retail network of outdoor specialty stores, is represented by Clinton E. Cutler of Fredrikson & Byron. The Company announced that the filing was initiated “to maximize the opportunity to achieve a ‘going-concern’ sale of its business.”
A corporate release explains, “Like many retailers, Gander Mountain experienced challenging traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce. Despite aggressive actions to improve the efficiency of the company’s retail operations and support functions, the underlying financial impact from underperforming stores and unproductive, excess inventory hampered efforts to create a sustainable path forward.” Gander Mountain Company is in active discussions with a number of parties interested in a going-concern sale and expects to solicit bids prior to an auction to be held in late April 2017.
The Company has obtained a committed debtor-in-possession financing facility underwritten by Wells Fargo. Subject to Court approval, this D.I.P. financing, combined with cash from operations, is expected to provide sufficient liquidity to support the company’s continuing business operations and to minimize any disruption during the reorganization process.
The Company initiated a previous bankruptcy filing in October 1996 and subsequently acquired by Holiday Companies. Gander Mountain Company’s current Chapter 11 petition indicates assets greater than $500 million.
Read more retail bankruptcy news.