Camping World Holdings, Inc., the nation’s largest network of RV-centric retail locations and only provider of a comprehensive portfolio of services, protection plans, products and resources for the outdoor enthusiast, announced the planned acquisition of certain assets of Gander Mountain Company and Overton’s, Inc.
On April 28, 2017, Camping World was chosen as the winning bidder at a bankruptcy auction for certain 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 Gander Mountain’s existing stores. Pursuant to Camping World’s 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 approximately $15,600,000, plus $22,150,000 for certain 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, certain 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 certain liabilities, such as 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 certain key Gander Mountain employees. The United States 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 that is currently scheduled for May 3, 2017 at 1:30 p.m.
Marcus Lemonis, Chairman and CEO of Camping World, stated, “the Gander Mountain and Overton customer and their affinity to the outdoor lifestyle are the perfect complement to our Camping World business. 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. While we are obligated to assume a minimum of seventeen leases, our designation rights will allow us to operate stores and retain employees at a number to maximize profitability.”
The structure of 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 commence the sale of Gander Mountain inventory at Gander Mountain locations. Lemonis added, “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.”
Brent Moody, Chief Operating Officer of Camping World, stated, “Camping World’s plan is to immediately right size the inventory and operate only in retail locations with occupancy costs that we believe support profitable operations, with an extreme focus on corporate overhead and expenses, consistent with our other operating segments.”