The largest chain in the world dealing with the outdoor specialty stores, Gander Mountain filed for bankruptcy on Friday and asked the court for protection from the creditors and expressed that the company wants to sell their business.
Gander Mountain will be shutting 32 stores out of 162 stores, but has decided to keep the store at Onalaska open.
Gander Mountain is a company, which is based in St. Paul. It had started to experience some financial crisis from the month of January and many of its vendors had not received their payment yet.
The company decided to file for bankruptcy when it realized that it lacks the resources and capacity to restructure its outlets that were getting faltered. According to the company, the idea of selling the business is the most optimal solution to fight their existing problems. The protection from the court will be assisting the company to protect the interest of all its stakeholders, employees, and customers.
The auction for the sale of the company will begin in the month of April and Gander Mountain is indulging itself in discussions with various potential buyers.
Overton Inc., which is a subsidiary that sells outdoor equipment and boat gears, was also filed for bankruptcy by Gander Mountain. It is situated in North Carolina and was open for sale in the previous year also, but Gander Mountain unfortunately had not come across any buyer.
The outlets Mankato, Rogers, and Woodbury in Minnesota and the stores of Germantown and Eau Claire in Wisconsin are the few that are closing because of their bad performance. Gander Mountain has reduced the prices available in its online inventory by 15 percent to 25 percent.
Despite the severe challenges and crisis, many creditors believe that Gander Mountain has the capability to overcome these hurdles and survive.
A media agency of Chicago, Starcom WorldWide’s executive Vice President, Jens Wilins said that Gander Mountain is a great company with a long legacy. Thus, despite all the turbulences in the market, the company can consolidate its hold and come on track again.
Gander Mountain is privately held by David Pratt and the Erickson family. David Pratt is an outdoors enthusiast and a businessman from St. Louis. On the other hand, the Erickson family is the owner of the Holiday Station store.
The bankruptcy files state that Gratco LLC of David Pratt owns a stock percentage of 44.6 percent and Erickson family owns a percentage of 44.8 percent. The rest of the stocks belong to the other 2 members of the family of Pratt.
The report by Dun & Bradstreet reported that the company has about 5,605 employees all across the nation and has witnessed an annual sale of more than 1 billion dollars.