June 12, 2017

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Gander Mountain Files for Chapter 11 Bankruptcy – Fifth Outdoor Retailer to File in Last Year

Last month we wrote 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

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About this Author

Thomas S. Onder, Stark Law, Retail Litigation Lawyer, Commercial Issues Attorney
Shareholder

Thomas S. Onder is a Shareholder and member of the Commercial, Retail and Industrial Real Estate, Litigation and Bankruptcy & Creditors’ Rights Groups of Stark & Stark. Mr. Onder is a member of the International Council of Shopping Centers (“ICSC”) and concentrates his practice in the area of commercial litigation, specializing in commercial landlord disputes and secured transactions before state and federal courts in New York and New Jersey, as well as the Federal Claims Court in Washington D.C. Mr. Onder also represents cooperative, condominium and homeowner...

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