Camping World acquires Gander Mountain assets in auction
Camping World's bid of $15.6 million -- plus $22.15 million for other assets -- was the winning bid in a bankruptcy auction held last week by the U.S. Bankruptcy Court for the District of Minnesota, the company said. The court also chose a group of liquidators that will conduct liquidation sales at substantially all of Gander Mountain's existing stores.
The court will sign off on the winning bids Wednesday.
Among the assets Camping World will obtain are intellectual property rights, operating systems and platforms, certain distribution center equipment, the Gander Mountain and Overton's e-commerce business and fixtures and equipment for the Overton's retail and corporate operations.
"The Gander Mountain and Overton customer and their affinity to the outdoor lifestyle are the perfect complement to our Camping World business," Lemonis said. "The structure of our deal provides much flexibility and will not only allow us to refine the inventory selection and select only those stores which are profitable or we believe have a clear path to profitability, but will also allow us to immediately offer our comprehensive portfolio of services, protection plans, products and resources to the existing Gander Mountain and Overton customer base and in stores in which we elect to operate."
Lemonis added that the company is obligated to operating 17 stores, but designation rights "will allow us to operate stores and retain employees at a number to maximize profitability."
Camping World Chief Operating Officer Brent Moody said they plan to initially operate only in locations with occupancy costs "that we believe support profitable operations, with an extreme focus on corporate overhead and expenses."
St. Paul-based Gander Mountain, a retailer of outdoors recreational equipment and clothing, filed for Chapter 11 bankruptcy in early March and closed 32 of 162 stores, including one in Algonquin, as a result.
Camping World, the nation's largest retailer of recreational vehicles and equipment, has more than 120 stores in the U.S.