Last month I posted a blog indicating that Gander Mountain was possibly preparing for Chapter 11 bankruptcy. The rumors were true.
St. Paul-based hunting and fishing chain, Gander Mountain Company, which bills itself as “America’s Forearms Supercenter,” filed for Chapter 11 bankruptcy protection on Friday in the U.S. Bankruptcy Court for the District of Minnesota, docket # 17-30673 and 17-30675. Gander Mountain is the nation’s largest retail network of outdoor specialty stores for shooting sports, hunting, fishing, camping, marine, apparel, footwear, and outdoor lifestyle.
In a press release, the company cites “challenging traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce” as reasons for the filing.
Despite the increase in gun sales, the company has faced increased competition from online retailers, like Amazon.com, as well as Dicks, Cabela’s, and Bass Pro.
The company reports that it seeks a going-concern sale, expecting to solicit bids prior to an auction in late April 2017 with a closing by May 15.
Gander Mountain currently has 152 stores in 26 states. It plans on closing at least 32 stores, including:
- Alabama (4) – Gadsden, Mobile, Montgomery, Tuscaloosa
- Georgia (3) – Augusta, McDonough, Snellville
- Illinois (3) – Champaign, Algonquin, Springfield
- Indiana (2) – Merrillville, Greenfield
- Minnesota (3) – Rogers, Mankato, Woodbury
- New York (1) – New Hartford
- North Carolina (2) – Raleigh, South Charlotte
- Tennessee (1) – Chattanooga
- Texas (10) – Houston, Killeen, Laredo, Lubbock, Round Rock, San Antonio, Sugar Land, Texarkana, Waco, West Houston
If you are a landlord with one of these tenants or if you have questions on how best to protect your center, Stark & Stark’s Bankruptcy & Creditor’s Rights Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of New Jersey, Southern District of New York, District of Delaware and Eastern District of Pennsylvania on a variety of issues. Most recently, our Group has represented landlords and trade creditors in the EMS, Golfsmith, RadioShack, A&P, Joyce Leslie and Sports Authority Chapter 11 bankruptcy cases.
For more information feel free to contact the author of this blog.