Gander Mountain Files for Chapter 11 As Prelude to Sale
Want to go into retail? Here’s your chance! Gander Mountain Company (GMC) is going on the auction blocks. To facilitate a “going-concern sale” of the business, GMC has filed bankruptcy petitions in the U.S. Bankruptcy Court for the District of Minnesota. Gander Mountain plans to put the business up for sale, and will solicit bids prior to an auction in late April 2017. The company expects to submit the winning bid to the Bankruptcy Court for approval in early May and anticipates a closing of the sale by May 15, 2017.
As part of GMC’s reorganization, it plans to shut down 32 Gander Mountain retail stores. (SEE Locations). More info about Gander Mountain’s restructuring is available at Donlinerecano.com/gmc. Court filings and claims information are available at the U.S. Bankruptcy Court website, www.mnb.uscourts.gov.
Here are highlights from Gander Mountain’s official statement about the Bankruptcy:
Gander Mountain [states that], to maximize the opportunity to achieve a “going-concern” sale of its business, it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.
This action is the result of an in-depth review of the company’s strategic options undertaken in recent months to preserve the value of the company and position it for long-term success. 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.
The company’s strategic review yielded the following conclusions:
- A narrowly focused and lower cost operating model is necessary to position the company for profitable growth;
- The company does not have the financial capacity or time to reset its operations to fully implement the new model and, as a result;
- The best available path forward is to sell the company on a going-concern basis.
The court’s protections will enable us to manage the sale process on an expedited basis while protecting the interests of our customers, employees and other stakeholders. Gander Mountain is in active discussions with a number of parties interested in a going-concern sale and expects to solicit bids prior to an auction … in late April 2017. The company expects to submit the winning bid to the Court for approval in early May and anticipates a closing of the sale by May 15.
The company generally expects to conduct normal business operations during the pendency of its restructuring. Employee pay will continue to arrive on time and in full, employee benefits will remain in place, retirement accounts are intact and protected. As a product of the company’s strategic review, 32 underperforming retail locations will begin a shutdown process in the next several weeks.
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