Gander Mountain to sell assets to Camping World for $37.75 million

By Caroline Salls

Pittsburgh, May 1 – Gander Mountain Co. and Overton’s, Inc. will sell some of their assets to Camping World Holdings, Inc., according to a Camping World news release.

Camping World was chosen as the winning bidder at an April 28 bankruptcy auction for some of the assets of Gander Mountain and its Overton’s boating business.

Simultaneously, a group of liquidators was chosen as the winning bidder to be retained as the agent for Gander Mountain to conduct liquidation sales at substantially all of its existing stores.

Under its winning bid, Camping World will purchase the Overton’s inventory for an amount equal to cost, which as of the date of the auction was $15.6 million, plus $22.15 million for other assets, such as the right to designate any real estate leases for assignment to Camping World or other third parties, other agreements Camping World elects to assume, intellectual property rights, operating systems and platforms, distribution center equipment, the Gander Mountain and Overton’s ecommerce business and fixtures and equipment for the Overton’s retail and corporate operations.

Camping World will also assume cure costs for leases and other agreements it elects to assume, accrued time off for employees retained by Camping World and retention bonuses payable to specified key Gander Mountain employees.

The U.S. Bankruptcy Court for the District of Minnesota will consider the approval of the Camping World winning bid and the liquidators winning bid at a sale hearing scheduled for May 3.

“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,” Camping World chairman and chief executive officer Marcus Lemonis said in the release.

“While we are obligated to assume a minimum of 17 leases, our designation rights will allow us to operate stores and retain employees at a number to maximize profitability.”

According to the release, the transaction will allow Camping World to immediately operate the Overton’s business as a going concern upon closing the transaction this month and the liquidators to immediately begin the sale of Gander Mountain inventory at Gander Mountain locations.

“The 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 offerings where appropriate, and our lease designation rights will allow us to select only those stores in appropriate locations with appropriate cost structures,” Lemonis said in the release.

Gander is a Saint Paul, Minn.-based retail network of stores for hunting, fishing, boating, camping, marine and outdoor lifestyle products and services. The company filed for bankruptcy on March 10 under Chapter 11 case number 17-30673.

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