Bankrupt Gander Mountain sold in $390m deal
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Bankrupt outdoor sporting goods retail chain, Gander Mountain, has been bought by the largest recreational vehicle dealer in North America, Camping World Holdings, and a group of liquidators.
The value of the winning bid is believed to have been around $390 million and beat a bid from rival Sportsman’s Warehouse. Camping World, which is run by Marcus Lemonis, a star on CNBC’s TV’s reality show, The Profit, will operate at least 17 Gander Mountain stores as a going concern.
An auction for Gander Mountain’s remaining 100 leases will be held later. The sale is subject to final approval from a U.S. bankruptcy judge. The consortium also won all of the intellectual property plus Gander Mountain’s Overton boating operation. Gander Mountain filed for bankruptcy in March with a plan to quickly sell itself after struggling with excess inventory and seeing under-performance from its 160 stores.
The company’s decline has followed a number of high profile casualties in the sporting goods sector over the last 18 months including Sports Authority, Eastern Mountain Sports and MC Sports, who have all gone bankrupt. This is against a backdrop of the proposed merger of two of the biggest players in the sector – Bass Pro Shops and Cabela’s – in a deal worth around $5 billion.
Camping World has 120 RV SuperCenters across the U.S. and sees synergies between its business, Gander Mountain and Overton’s.