Gander Mountain, which sells camping, fishing and hunting gear throughout the country, is getting ready to file for bankruptcy protection. The possible Chapter 11 bankruptcy filing comes as the retailer struggles to keep up with its debt. Any business in the state of Massachusetts that cannot overcome its debt challenges may find Chapter 11 bankruptcy protection to be beneficial long term.
The retailer, which is privately held, has opened about 60 new retail stores since 2012. It has more than 160 locations in 27 states. The store also operates a catalog business online along with an electronic commerce retail unit.
The company’s debts include a loan for $30 million as well as lines of credit that are revolving and total $500 million and $25 million. It was not immediately clear the total amount of money that the company has not yet drawn on in these lines of credit. A major reason for the company’s bankruptcy filing is the stiff competition in today’s sporting good industry. Many retailers, like Gander Mountain, have not kept up with evolving customer demands and changing trends, or they have overextended themselves.
Sometimes having more liabilities than assets is the result of a poor economy or industry changes that are hard to anticipate. However, struggling companies in the state of Massachusetts and elsewhere can file for Chapter 11 bankruptcy in order to keep their ventures alive while repaying their debts over time. An attorney can lead one through this type of bankruptcy filing, which can be more complex than those for other types of bankruptcy protection.
Source: retaildive.com, “Outdoor retailer Gander Mountain mulling Chapter 11“, Daphne Howland, Feb. 13, 2017