Camping World backtracks on outdoor sports offer
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Camping World Holdings appears to have called time on its efforts to expand into all things outdoors after buying the Gander Mountain chain out of bankruptcy in 2017.
The US company looked set to build shares in fishing and other outdoor activities when it announced plans to open 70 Gander Mountain – now rebranded as Gander Outdoors – retail stores.
But the undertaking has proved too ambitious for a company that until the acquisition had focused on its core business of selling and servicing recreational vehicles (RVs).
The move resulted in mounting losses and CEO, Marcus Lemonis, is now executing a turnaround plan to shed all Gander Outdoor assets to refocus on Camping World’s original business.
Speaking at a third quarter investors call, Lemonis said: “We have reduced our non-RV inventory by approximately $100m, largely driven by the strategic shift. Our plan is to reduce the non-RV inventory by an additional $40 to $50m in the coming months.”
Camping World’s bid to expand through the Gander Mountain acquisition proved highly damaging to its EBITDA (earnings before interest, tax, depreciation and amortization). Third quarter results reveal EBITDA crashed 37.5% to $60.6m.
The first nine months of 2019 saw adjusted EBITDA suffer a breathtaking dive to $181.1m from $302.2m year-on-year.