LINCOLNSHIRE, Ill. — Camping World Holdings announced May 7 the planned acquisition of certain assets of Gander Mountain Company and its Overton’s boating business.
The announcement followed Camping World’s successful bid for certain assets of Gander Mountain and Overton’s in a bankruptcy auction April 27 and 28. The transaction was approved by the United States Bankruptcy Court for the District of Minnesota May 4.
The next day, CWI, an indirect wholly-owned subsidiary of Camping World, entered into an asset purchase agreement with Gander Mountain. As part of the agreement, Camping World obtained the right to designate any real estate leases for assignment to Camping World or other third parties and initially plans to operate stores that it believes have a clear path to profitability.
“After reviewing the stores in more detail since our successful bid in the bankruptcy process, our current goal is operate 70 or more locations subject to, among other things, our ability to negotiate lease terms with landlords on terms acceptable to us and approval of the bankruptcy court,” said Marcus Lemonis, chairman and CEO of Camping World.
“The current liquidation of the existing Gander Mountain inventory will allow us to start with a clean slate of what we consider the appropriate mix and level of inventory, including the addition of Camping World and Overton’s offerings where appropriate,” said Lemonis.
In an email to employees sent on Friday, Lemonis noted that, in some cases, he will be integrating a Camping World operation either into or next to a Gander Mountain and Overton facility and vice versa. He promised to provide more information on that at a later date, but reiterated that his commitment to suppressing corporate overhead and eliminating waste will remain a top focus.
Lemonis also explained that Gander Mountain and Overton will be operating separately and that there will be management teams in both companies.
“It is with great excitement that I share some news. Yesterday our company acquired the assets of both Gander Mountain and Overton,” Lemonis told employees. “Both have been household names for years in the outdoor leisure space. It is our goal to run both brands underneath our corporate umbrella.
“The current plan is to map a path keeping stores or segments that are profitable or have a clear path to profitability. We will not take any risks unless that path is clear. That includes receiving adjustments from landlords and other entities that impact the cost structure,” he explained.
“At this point our goal is to get to 70 plus stores for Gander Mountain and maintain all operations for Overton. Furthermore, we have acquired the assets and operations of gandermountain.com and Overton.com, both profitable as well,” said Lemonis. “In addition to offering employee pricing, our goal is to rollout the Good Sam Club across the platform as well as the other products and services.”
SOURCE: Camping World press release and employee email