Report: “America’s firearm superstore” headed for bankruptcy
From Trussville Tribune staff reports
Self-proclaimed “firearms superstore” Gander Mountain Co. is preparing to file bankruptcy, according to a report from Reuters last week. The hunting and fishing chain could file as early as this month, the report reads.
Despite a booming gun market, the company just has not been able to capitalize. TheFBI carried out more than 27.5 million background checks on people seeking to buy guns in 2016, up 19 percent from the year before.
The company, based in St.Paul, Minn., has struggled to compete with the likes of Bass Pro Shops and Field & Stream. Johnny L. Morris’ chain Bass Pro Shops recently purchased Cabela’s, Inc. for $5.5 billion, adding to the pressures faced by Gander Mountain.
According to the Reuters report, Gander Mountain confronts financial trouble after an aggressive expansion across the United States for a total of about 160 stores, with nearly 60 new outposts opened or announced since 2012.
The company has a $30 million loan, and revolving credit lines for $25 million and $500 million, according to Thomson Reuters data. It is not clear how much money in the credit lines Gander Mountain has yet to draw down on.